CONDO MARKET REPORT
While July sales on the Toronto Real Estate Board were down 19% from June, they were still some 23% higher than in July 2000. Overall, these are signs of a strong market. But when you analyze these numbers, 75% of all sales took place between $110,000 and $300,000. When you translate the numbers into Downtown condos, unit sales were up only 4% from a year ago, with most sales concentrated under $300,000. That means larger condo units are taking considerably longer to sell.
To provide a concrete example, a 2400 sq.ft. unit with the 'best view' in a prime waterfront condo sold last month for $770,000. The same unit sold two years ago for $850,000. How could this happen when the market has increased by 20% in the last two and a half years? The real estate market is not unlike the stock market. Even when stock market averages are up, some stocks still go in the opposite direction.
While we always talk about prices per sq.ft., buyers and sellers should be careful. It is best to compare prices per sq.ft. within the same building not between buildings. Each building has a unique location and it own amenities. It is not uncommon for prices between buildings Downtown to differ by more than $50/sq.ft. On the other hand, smaller units usually sell for more per sq.ft. than larger units. Bachelors Downtown are now over $300/sq.ft. while units over 1,000 sq.ft. can be found in the $275 range.
Looking to the Fall market, we expect sales to be steady. Prices are not rising, and if anything we see a softening. The Fall represents an excellent opportunity for buyers as we believe prices will begin to rise this Spring. Most of the new condo product will not be coming on the market until the latter part of 2002.
The rental market remains tight with very little new product/buildings coming on stream until next year at the earliest. There is little product under $2,000 per month. With a few exceptions, the base rate is now $1500 per month. We are starting to see some increase in demand for higher priced units ($3500+) which is an indication that corporate executives are starting to be transferred again. Remember that not all condo rentals have parking. Depending on the building, one can expect to pay from $90 to $175 per month extra for a spot. This is an important factor to consider when comparing various rental units.
Selling your property quickly - to alleviate the stress of keeping it ready to show and of worrying about owning two properties - is almost as important as the selling price. The Toronto Real Estate Board reports that properties that sell are on the market for an average of 42 days. In comparison, RE/MAX Condos Plus averages just 33 days! If you want to take the stress out of selling your condo, then contact any of our Associates.
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