NEW YORK VERSUS TORONTO CONDOS
When we think of the U.S. market, all we hear is falling sales and falling prices. But real estate markets are not national, they aren't even city based - they are really about neighbourhoods. Look at New York. Prices there are not going down. According to a Toronto Star article on January 19, newer condo buildings are offering Penthouse units at $6,000 per sq.ft. At that price a 3,000 sq.ft. Penthouse would go for $18 million - normal for New York but never seen in Toronto, although a couple of condos have been sold for that price from plans but have yet to be built and occupied.
In New York, the latest trend in Penthouses sales means that you can buy a smaller unit for your servants on the first couple of floors in the same building. What are servant quarters going for? Try a minimum of $875,000 for 350 sq.f.t or $2500 per sq.ft. Why you can buy a Penthouse in Toronto with all the upgrades for $1,000 per sq.ft. And you could find servant quarters - read a regular condo for about $400 per.sq.ft.
Toronto prices look pretty good. While we are not New York, or London for that matter, our prices don't seem to be at a point where any price correction is in the foreseeable future. My guess is that prices can move to $600 per sq.ft. in the next three years without any problems!
Anyone want to challenge that assertion?