Canada Realty News

Back to: February 2009

Is a Condo a Good Investment Now?
Latest Statistics from CMHC Show Condos make sense for investment or ownership. Rentals are up 30% over last year according to the Toronto Real Estate Board's analysis of the last quarter of 2008 vs 2007. The Condo Situation looks promising. The percentage of total sales is expected to continue rising from a quarter of all sales in 2000 to 60% this year. Condos are selling well and renting well, making them a good investment whether you're planning on moving in or leasing out. New Construction Favouring Condos This chart shows that construction of Condos is actually increasing. New construction of single and semis has fallen steadily since 2002. Young people, seeking a downtown lifestyle; empty nesters downsizing; people tired of commuting; all make condos extremely popular and support a robust market. Hi Rise Sales Stable Condo sales have had some ups and downs, but sales volume by year has been quite steady. The CMHC expects a slight dip in 2010. The rental market for Condos is improving as potential first time buyers postpone home purchases in favour of renting. As this chart shows, renters are less inclined to leave their apartments and pursue home ownership. Rentals through the MLS are up 12% over 2008. Compare the Condo vacancy rate of 1/2% with that of the average apartment - over 2%. Strong demand for Condo rentals could make them an ideal investment. The percentage of rented condos continues to decline as a percentage of the total number of existing condos in Toronto. Even though the total number of Condos continues to increase. This means there is a high degree of owner occupancy and there is little speculation in Condo purchases. Given the popularity of Condo ownership and the low vacancy rate for Condo rentals, it's likely that new Condo construction will not result in oversupply in the foreseeable future. Is a Condo right for you? Give us a call and we'll arrange a meeting to discuss your needs and budget. There are many out there and an experienced agent can help you find the right one and get the best deal.

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With Compliments of

Semone Duerr
Sales Representative

Re/Max Hallmark, ltd., Brokerage
2237 Queen St E
Toronto, ON, M1E 1G1
T: 416 699 9292
D: cell: 416 566 6050
homes@GreatTorontoHomes.com
www.GreatTorontoHomes.com

Hi:

Sales and Listings Lower, Prices Up

July, 2010 -- July's sales dipped 34% from July, 09 and listings were the lowest since 2002. However, year-to-date sales were up 12% from the same period. Average price was up 12% from a year ago to $432,253. Read the Complete TREB MarketWatch.

“Market conditions promoting growth in the average selling price have remained in place. While July sales were down compared to last year, the number of new listings in the marketplace also fell. This means there was enough competition between buyers to exert upward pressure on price,” said TREB.

Despite this, I have noticed a significant upswing in buyers' interest and expect a very busy post-Labour Day season. Rates are low and expected to remain low with the sluggish economy, the HST has gone through and has minimal impact on the existing housing market. Fewer listings will mean more competition amoung potential buyers for a smaller stock of available homes.

Upper Beach Reno

We're down to the painting on our reno project. We're on track for Open Houses the weekend after Labour Day. See my website for daily videos of the construction.

NATIONAL MORTGAGE RATES
Term	Posted Rates*	Best Rates*
6 Month	4.55%	3.95%
1 Year	3.50%	2.45%
2 Year	3.90%	2.80%
3 Year	4.45%	3.35%
4 Year	5.05%	3.80%
5 Year	5.40%	4.00%
7 Year	6.20%	4.80%
10 Year	6.50%	5.20%
Variable Rate		3.25%
Prime Rate		2.75%
* last updated: Aug 30, 2010

The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice. If your property is currently listed with a Real Estate Broker, this publication is not intended as a solicitation.