Who says it’s only hot on the left coast? Toronto’s condo market has been the definition of “hot” throughout the summer.
Toronto residential sales spiked 15% in August compared to last year. Condo sales are up 22%. Downtown they’re up 32%!
The sales-to-listings ratio for condos in downtown Toronto is now an astounding 90%. 25-35% is typical.
While it’s slowed down a bit in September, RE/MAX Condos Plus says, “multiple offers are the norm,” and advises to beware of the “phantom offer.”
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Last modified: April 25, 2014
Add heat you get sizzle, from sizzle comes the bubbles, and when bubbles pop you get burned. Never cook bacon without a shirt on.
I can’t believe some of these prices quoted in the article. An estimated $600,000 for a 1614 sq ft loft? In order to afford that you would have to put 120,000 down and have a mortgage for 480,000. In order to do this your payment would be $2,929.88 (480K, 25Year, 5.5%). For that to be doable you would have to make around 110K a year (32% of monthly income).
I was recently reading another article that stated the top 5% of income earners in Canada make around $89,000. Add about 4% per year since that was quoted as 2004 numbers you get to around 104,000 for 2007. That means only around the top 5% of the whole country can afford these prices, even with 20% down. The median family income in Toronto may be close to 90-100K or so, but I very much doubt that families are buying lofts downtown.
I see us following in the footsteps of the USA. California, here we come. Only with snow up to our ears.
P.S. If I was going to spend 480K on a home it better be something like this:
http://tinyurl.com/39ou8n
If you could please delete the last post, the URL was far too long and goes off the page.
“Never cook bacon without a shirt on.” I love it. :)
You make excellent points about affordability. It’s amazing how Canadians are finding ways to bring the average property within financial reach. As for the repercussions of this, well… :(
Melanie