FACTORS TO CONSIDER IN 2012:
Residential Resale Market – We expect sales to remain at the 90,000 level. Remember that the all time sales record was achieved in 2007? Toronto is now a much bigger market in terms of people and incomes than five years ago, so why would sales drop? With a lack of new detached housing, prices in this sector – particularly in Central Toronto – will continue to appreciate.
Condo Resale Market – We have 18,000 condo units that were completed in 2011 and half of them will be added to the resale market. This extra supply will mean that prices will be flat in 2012. Stay in the $500-550 per sf range and you will be in good shape.
People love the condo lifestyle. Baby boomers downsizing and moving into condos has just begun. In five years, it will be significant. The ‘echo’ generation, children of baby boomers, are just entering the real estate market and want to live in condos, centrally located in a happening neighbourhood. Lastly, Toronto’s immigration is not going to slow (80,000 per year). Many of these people want to be living downtown, close to public transit, Universities, and the ongoing events & festivals that Toronto has to offer. That being said, expect demand to be high for condos in 2012.
Pre-Construction Market – Almost 100% of pre-construction sales are to investors. They buy condo units either to rent out or to sell as ‘Assignments’ to end users to live in. They look at rental rates and try to anticipate future price appreciation. By the end of 2011, pre-construction sales downtown were averaging $800 per sf which we believe is unsustainable. Read more »
Filed under: Ashley's Market Reports, Market News | Tagged: ashley lamb, buying, condominiums, houses, interest rates, investing, preconstruction, real estate, refinancing, toronto | Leave a Comment »




TORONTO MARKET REPORT OCT-NOV 2011
SALES COMMENTARY:
Looking back at October, sales were only slightly higher than September, which is the first sign of a slowing market. Not only are there less active listings on the market than a year ago but there are also less active buyers. It looks like the mortgage restrictions introduced by the Federal Government in stages are now starting to impact demand. Good news for any buyer; less buyer competition means less budding wars, resulting in more of an equal market. On the other hand, sellers trying to maximize their price have missed the peak and may have to wait to test the spring market.
If you are looking to buy and sell at the same time it becomes a little trickier. Everyone knows that it is best to buy when the market is down and sell when the market is booming, but unfortunately that is easier said than done. If one had to choose, I would recommend upgrading in a slower market as the monies saved from the purchase will likely to be greater than profit lost on the sale. Why? Because cheaper properties hold their value more as there is a larger target market. Higher end properties tend to dip a little more in price because Read more »
Filed under: Ashley's Market Reports, Market News | Tagged: ashley lamb, buying, condominiums, houses, real estate, rental commentary, sales commentary, selling, upgrading | Leave a Comment »