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Good Start to 2011
February 4, 2011 -- Greater Toronto REALTORS®
reported 4,337 transactions through the TorontoMLS®
system in January 2011. This result was 13 per cent lower than the
record result reported in January 2010.
"While off the record pace experienced a
year ago, the GTA resale market has started the year on a solid
footing. Home buyers in Toronto and surrounding areas continue to
benefit from a diversity of housing types for sale at many different
price points," said TREB President Bill Johnston.
The average selling price for January 2011
sales was $427,037, representing an increase of over four per cent
compared to the average of $409,058 reported in January 2010.
"The average selling price is expected to
grow at a moderate pace in 2011. Growth rates in the three to five per
cent range will be sustainable from an affordability perspective,"
said Jason Mercer, TREB's Senior Manager of Market Analysis.
Median Price
In January, the median price was $360,000, from
the $350,000 recorded during January of 2010.
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Long-term
Future is Bright for Canadian Condos
by Jim Adair
Drive around any major
Canadian city and you're likely to see lots of new condominium
buildings under construction. You may wonder who is going to buy and
live in those condos – and the answer is,
everyone.
In 2006, when the last
Census was held, the number of owner-occupied condos in Canada was more
than five times greater than it was in 1981, and anyone who has been to
a Canadian city recently can see that number is still increasing.
Canada Mortgage and Housing Corp. (CMHC) says
condos now account for a quarter of all new residential construction.
As of 2006, almost a third
of all homeowners in Vancouver were condo dwellers. In B.C., where
condominiums are known as strata title, market share is about 20 per
cent in Abbotsford, Kelowna and Victoria. Toronto, Calgary and Edmonton
are not far behind and now condos are sprouting up in smaller urban
centres across the country.
On the resale market, condos
represent one in every three houses sold in the Greater Toronto Area,
one in four sold in Ottawa and Hamilton-Burlington; and almost one in
five in London, Kitchener-Waterloo and Collingwood, Ont., says a report
by Re/Max Ontario - Atlantic Canada.
"As one of the few
affordable housing options available to first-time buyers, the concept
is poised for dramatic growth in years to come," says Michael Polzler, president of Re/Max Ontario - Atlantic
Canada. "The lifestyle has also gained a foothold with younger,
hipper audiences, as the definition of homeownership evolves with the
changing demographic. Dreams of the small home with a white picket
fence are being replaced by the funky loft apartment in close proximity
to shops, restaurants and entertainment."
First-time buyers have
fuelled Canada's housing market for most the last decade and brought it
out of the brief recession in 2008. While they are still very important
for the health of the real estate market, changing demographics and a
more stable economy are shifting the market dominance away from
first-timers.
"This will mark the
first year that the housing market will not be dominated by younger
people," says Shaun Hildebrand, senior housing analyst with CMHC.
"In the Greater Toronto Area, there are 600,000 households in the
45-54 age group. They could represent about a
third of all housing sales in the GTA."
And increasingly, those 45
and over are choosing condominiums when buying a home. CMHC says that
57 per cent of condo owners were aged 50 or over in 2006. In the
Toronto area in 2009, 23 per cent of buyers in the 45-54 age group
chose a condo; 28 per cent aged 55-64 went that route; and 40 per cent
of buyers aged 65 and over moved into a condominium. Hildebrand says
that on average, 75 per cent of units catering to "empty
nesters" are presold.
The bottom line for condo
developers is that "empty nesters will pick up the slack for the
fewer number of first-time buyers," says Hildebrand.
Driving around Toronto, it's
hard to imagine where the buyers will come from for all the new
buildings. "Over the last two years, we've had an average of
35,000 units under construction," says Hildebrand, but CMHC
doesn't think there will be an oversupply. All the buildings under
construction are almost completely presold in Toronto – a requirement
from lenders before funding is provided.
In downtown Toronto and
Vancouver, Asian and Middle Eastern investors buy up many of the new
condos as investments.
"Unlike 1989, when a
flood of new condominium listings wrecked havoc on the market, these
purchasers are in for the long haul," says Polzler.
"Leverage is not a factor, with most paying cash for their units.
If they can't sell their apartments, they're more prepared to rent them
out." Hildebrand says that of the 20,000 condos registered in
Toronto in the last year or so, about a third of them have been listed
for sale. But demand for those units has been strong and while sales
have slowed, prices have held.
Luxury condos – priced at
more than $1 million in Toronto – are up by 49 per cent year-over-year,
reports Re/Max. Condos priced at more than $750,000 in Ottawa have seen
sales increase by about 72 per cent compared to last year.
CMHC says that Canadians are
not giving up on homeownership until after they reach the age of 75.
With owners of all ages choosing the condominium lifestyle, expect to
see a lot more of those building cranes in urban areas during the next
several decades.
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Secrets for Happy Condo Living
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 Living in an apartment or condo can be a rewarding
experience and you can truly be happy with a lower cost and little
work. However, a condo is more than a financial commitment; it's a
social commitment as well. In this article we'll examine these
considerations to make sure that your new condo life is a great one.
When you're in buying mode, it's common to think only in terms of
dollars and cents. But it's essential not to forget the social aspect
of living in a condo. Different complexes work well for different
kinds of people, so get to know your complex as well as your
prospective neighbours to make sure that they're a good fit for you.
If you're easing into retirement, it might not be a great idea to buy
a condo next to a bunch of hard-partying college kids or vice versa.
When you live in a condo you have to share walls, ceilings, floors
and common areas with neighbours. All of this means keeping close
quarters with your neighbours. While that is not a big deal for those
who have lived in apartments, others will have to get used to that
level of close proximity to their neighbours.
The key to happy condo living is keeping your neighbours happy too.
Respecting your neighbour’s right to the quiet enjoyment of their
home is part of the arrangement. Your neighbours will appreciate, and
hopefully reciprocate your efforts to lower the volume, walk quietly,
and limit your vacuuming and entertaining to reasonable hours.
Another big issue in condominiums is pets. Most people are good about
looking after their dog, but some people who exercise their pets will
take them to the courtyard and not clean up after their pet’s mess.
A little flexibility is important too. If your neighbours are
willing to turn down the volume for you and keep things as quiet as
they can, perhaps you can be more understanding to their situation as
well. They’ll really appreciate the give-and-take
relationship. For your neighbours with children, try to
remember that kids will be kids.
You need to remember that a condo living is a community, so you need
to deal with your neighbours as community members and try to resolve
the issues together. If that fails, the board will then
intervene. For the most part, condo boards will ask people to
resolve most issues themselves. They will recommend going to
the neighbour and sitting down to talk with them to work things out.
Before you make a condo purchase, knock on a couple of doors and
introduce yourself as a potential buyer. Ask your future neighbours
questions about the complex that aren't being answered by the real
estate agent, or ask the same questions again to get a different
perspective without the sales pitch! Not only can you learn a lot
about the people you'll possibly be living next to, but you can gain
insight into how much they enjoy living in the complex.
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