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Toronto Real Estate Board Releases Q1 Condo Report

The Toronto Real Estate Board has released its Toronto condo sales report for the first quarter of 2012. According to the report, 5,027 condo apartment transactions took place through the Toronto MLS Listings during the first quarter of 2012, which is a two per cent increase over last year’s first quarter. In addition, new condo listings are up 14 per cent.

“With sales increasing moderately year-over-year and listings growing strongly, the condo apartment market became better supplied in the first quarter,” said the president of the Toronto Real Estate Board, Richard Silver. “With more choice for buyers in the condo market segment compared to the low-rise segment, the average selling price for condos grew at a slower pace in comparison to some low-rise types including detached homes.”

According to the report, prices increased by 3.7 per cent to an average price of $322,857.

“Condominium apartment completions were at the highest level ever in 2011,” said Jason Mercer, the senior manager of market analysis for the Toronto Real Estate Board. “As projects completed, some units held by investors were listed for sale. As a result, it is not surprising that we saw more moderate rates of price growth in the first quarter. However, the fact that annual price growth remained above the rate of inflation is testament to the fact that demand remains strong for this home type.”

Restrict Foreign Buyers In Toronto – Finally Someone Got It Right !!

We’ve all seen the condo cranes on Toronto’s skyline and everywhere you drive in downtown Toronto you come across new development sites and sales centres.  You might be asking yourself… are there that many people moving into central Toronto?

The trend we’ve seen for condo builders over the last 8-12 months is signs that the supply of “local, live-in-the-suite” buyers for condo apartments has been drying up.  Builders used to be very cautious about allowing the assignment of offers from one buyer to another for the simple reason that it encouraged speculation in the market.  Not any more… now many builders are allowing purchasers to almost have the ability to assign their agreements within three months of buying from the builder… and years away from the occupancy or registration dates!

This practice makes their product more appealing to investor buyers who, for the most part, are from outside Canada.  It gives those investors more flexibility to dispose of their agreement before the condo is even completed.  That assumes of course that there is a market for those contracts which may or may not be possible.

The problem that may be building for the future… two to four years down the road because of the lead time for a high-rise condo to be constructed… it that there will be too many units coming available for occupancy.  This will A-dampen the rental market and make an existing negative cash flow situation worse OR B-cause condo values to decrease or both… neither of which existing condo owners would be excited about.

Diane Francis from the National Post recently wrote an article referencing this problem and offered the solution that the Canadian Government take action and restrict the number of suites that overseas investors could purchase in Canada and ban them from getting mortgage financing that is insured by the Canadian taxpayer via CMHC. 

Lest you be concerned about some sort of bias here, China and Hong Kong have the very same kinds of restrictions in place themselves as do other countries like Australia, Thailand and many countries in Europe including Switzerland.

Read the complete Diane Francis article here.

The Very First Steps To Buying Your First Toronto Condo

Are you gearing up to buy your first Toronto condo? Great! Here are a couple of tips to help get you better organized and in contact with people who can make the process much easier on you.

1. Pick a neighbourhood

Toronto is full of vibrant neighbourhoods, most of which have condominium projects going up as you read this. Educate yourself on the local schools, gyms, restaurants, shops or anything else you might be interested in so you’ll have a much better idea of what life will be like in your new condo. This will save heartbreak and headaches later and make sure that you’re happy in your new space.

2. Find a real estate agent.

A buyer’s agent is paid for by the seller, so it’s free for you. When buying a condo or home, a buyer’s agent makes the process so much easier. A great agent is especially handy when buying a condominium if they’re familiar with the area and specialize in condos – not all builders are equal and not all of them are entirely reputable. It definitely pays to have someone guide you through your choices.

3. Meet with lenders in person.

Just as all builders aren’t equal, neither are all lenders. Meet with several in person. They can help you get your financing in order and introduce you to programs and incentives you didn’t know about.

Is The Market Hitting The Top?

March MLS sales totalled 9,690 houses and condominiums in all the districts. This sales number was up almost 8% from one year ago but up almost 18% above the average for March since the year 2000.

Just under one-third of the market sales were condo townhouses and high-rise suites with 2,933 units changing hands during the month.

The March average sale price came in at $504,117 – up 10.5% from one year ago.

East of Yonge and south of Bloor in the C08 downtown TREB district, the condo sales price average dropped to $397,870 while west of Yonge in C01 the average was down $10,000 to $417,000. I’ll give you more condo market details in just a few minutes.

Click on the video below to watch the entire March Toronto Real Estate Market Report.

Here’s the text version to read.

 

Could Toronto Condo Sales See Another Record Year?

In 2011, 28,190 condominiums were sold in Toronto, which was an almost 25 per cent increase over the previous high seen in 2007.

Could 2012 be another record-busting year for Toronto condos?

While many critics are worried about a bubble, Toronto still has more than enough going for it to keep the condo market going: people wanting to be closer to downtown, plenty of downsizers who aren’t interested in a commute, high immigration and low interest rates. Even though the presence of these important market fundamentals don’t keep critics at bay, new projects are selling fast.

This Moneyville article details a slew of new Toronto condo projects that have been springing up all over the city, and how one VIP sales event was so jam-packed it resulted in an over one-hour wait to get cars back from the valet!

Toronto continues to be a place where new, unique and amazing condo projects continue to shine – and it’s great to watch the city grow!