Toronto Loft Conversions

Toronto Loft Conversions

I know classic brick and beam lofts! From warehouses to factories to churches, Laurin will help you find your perfect new loft.

Modern Toronto Lofts

Modern Toronto Lofts

Not just converted lofts, I can help you find the latest cool and modern space. There are tons of new urban spaces across the city.

Unique Toronto Homes

Unique Toronto Homes

More than just lofts, I can also help you find that perfect house. From the latest architectural marvel to a piece of our Victorian past, the best and most creative spaces abound.

Condos in Toronto

Condos in Toronto

I started off selling mainly condos, helping first time buyers get a foothold in the Toronto real estate market. Now working with investors and helping empty nesters find that perfect luxury suite.

Toronto Real Estate

Toronto Real Estate

For all of your Toronto real estate needs, contact Laurin. I am dedicated to helping you find that perfect and unique new home to call your own.

 

Toronto Real Estate Forecast 2007 – New Home Market

Lower Housing Starts

The real estate market in the Toronto Census Metropolitan Area (CMA) is at the mature stage of the market cycle. The downward trend for new home construction will continue through 2007. With a forecast total of 36,400 new home starts will move closer to the long-term average of approximately 30,000 observed between 1980 and 2006.

Ground-oriented home construction, particularly in relation to single and semi-detached houses, will continue to be the primary driver of reduced building activity. The number of condo units breaking ground will remain in line with the record and near-record levels experienced over the past two years.

Less Spill-Over from Resale Market

The tight seller’s market conditions experienced for existing homes over the past decade have moderated.

With more choice, a larger share of Toronto condo and home buyers will meet their housing needs through the purchase of a resale home. Consequently, fewer buyers will start their home search in the new home market. The impact of less spill-over demand has largely been felt in relation to new low-rise home sales, which declined by 12% through August compared to the first eight months of 2005.

High-rise condo sales have been running slightly higher than last year, with an increase of almost 2%. Fewer total new home sales this year will translate into lower housing starts next year and beyond, as the lag time between sale and start of construction often extends beyond one year’s time.

High Cost of Construction

Rising construction costs have resulted in high new home prices. As the demand for new homes has remained above average over the past ten years, Toronto builders have been faced with escalating prices for land, labour and materials. In order to remain profitable, builders have had to pass on increased costs to home buyers in the form of higher advertised prices at sales centres.

While most households would like to purchase a single-detached home, high home prices have prompted many buyers to purchase a less expensive semi-detached house, town home or condo. Multiple-family home types, including condos, will continue to account for approximately two-thirds of new home construction in 2007 – a much higher share than what was experienced earlier in the current new home construction cycle.

Spotlight on Toronto Condos

The condo is the most popular type of multiple-family home being  constructed in the Toronto area. The great majority of condo construction will be focussed in the City of Toronto next year and into 2008, with over 70% of pre-construction high rise sales in 2005 and 2006 occurring in this area.

The Former City of Toronto on its own will account for at least half of total condo starts in the metropolitan area. Outside of the City of Toronto, the established high-density node of Mississauga City Centre and certain areas in York Region will continue to experience substantial levels of condo construction.

The Investment Scene

Increased sales and construction of condo units has raised questions regarding the level of investor ownership and, by extension, price speculation that exists in the Toronto condo market.

The share of existing condos that are tenant as opposed to owner-occupied is a good indicator of investor activity. CMHC’s 2005 Condominium Survey for the Greater Toronto Area indicates that the share of rental units, at slightly less than 19%, is currently at very low levels. In contrast, in 1995 over 30% of the Toronto condo stock was investor held.

Speculative activity in the Toronto condo market is low relative to the peak of the last housing market cycle in the late 1980s and early 1990s. Between 1995 and 2003, many rental condos were sold as investors took advantage of capital gains resulting from robust annual price growth. A combination of slower price and rent appreciation and competition from other asset classes, including equities, has kept investor activity flat over the last three years.

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Contact Laurin Jeffrey for more information

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