GTA new lowrise home price hits record high

ASHBURN, VA

Change Location

Back to Conversations

ROB LOVE

Buzzer

GTA new lowrise home price hits record high

http://www.thestar.com/yourhome/real%20estate/article/1218756--gta-lowrise-home-price-hits-record-high

Lower Low Rise inventory, Higher supply of High Rise. It's not often talked about when they make headlines but the other side of higher condo inventory is an historically low level of LR inventory.

I hear some chatter about building bigger condos, but just don't see it yet....

With wages/salaries pretty much flat and interest rates inevitably going to go up in the coming years - Is owning a LR detached home going to be a pipe dream for the next generation (or even this one...)?

Canada / General Chit-Chat

MATTHEW SLUTSKY

BuzzStaff

1969

It is interesting. As I drive through the areas surrounding downtown Toronto I am always blown away by the amount of single family houses out there. These are houses pretty much walking distance, or biking distance from downtown, and there are a plethora of them.
I have a hard time believing that Toronto - in the near future - will have a large shortage of single family houses, but I do think that there will be shortages around GOOD public transit routes. Heck, there is already huge demand in these areas with little supply.

JOSIE STERN

Buzzer

There is a shortage of single family houses in downtown Toronto. If that weren't so then bidding wars wouldn't exist and properties would take longer to sell than just a few days or hours in some cases. There is also a shortage of larger condos (not 500 sq ft cubicles) for empty nesters who want to downsize but don't want to pay over a million dollars. I was recently trying to find a client a 1300 -1500 sq ft condo in the city for between $750K to $850K. This is a rare find on the bus or subway line. You can only find them in older condo buildings and the maintenace fees are outrages because older buildings need a lot of upkeep.

ALEXANDER KVITNITSKY

Buzzer

Generally the best place to find good sized condos would be in the older buildings, and although the maintenance may seem high what you have to remember is that its based on the apartment size as well.
I currently have a listing for a condo unit in an older building that is sq-ft, and the maintenance is about 800$ which is about 50cents per square foot.
if you took that pricing per square foot and compared it with many of the new condo project downtown Toronto you'll find that many of them average at around 50cent per square foot as well.
www.Investment-Library.com

MATTHEW SLUTSKY

BuzzStaff

1969

Josie said:
There is a shortage of single family houses in downtown Toronto. If that weren't so then bidding wars wouldn't exist and properties would take longer to sell than just a few days or hours in some cases.

Are you seeing this across the board, or only in areas with good public transportation options?

Josie said:
There is also a shortage of larger condos (not 500 sq ft cubicles) for empty nesters who want to downsize but don't want to pay over a million dollars.

Without a doubt. I think that people buying the larger units in new-construction with parking will do very well over time.

ALLEN

Buzzer

129

I think larger condo units in older buildings with parking would do very well as well.
Older buildings usually have less units (more boutique sized), less renters/resident turnover, less amenities that people don't really need or ever use, often located in more established neighbourhoods or have more established businesses nearby, has already developed a strong condo board/management, have larger units with full-sized appliances, generous sized rooms and storage, etc.

Pre- and new construction are overpriced these days. Although construction methods and technology has improved, I have found the condos that are built today and in the upcoming years are being built too fast and cutting a lot of corners where quality and durability will suffer -- take a look at window walls and glass balconies failing.
There is great value in resales in condo buildings 5 years or older. With the money you are saving you could remodel or make upgrades which make your unit more unique and customized which will stand out in the market of cookie-cutter condos once you are ready to sell. Be sure not to go too wild with your renovations and improvements that may turn off potential buyers.

Condo fees for pre-construction that developers initially set are relatively low (in the 50-cent range per sq.ft.), and will jump after the first year or two of occupancy when the actual operating & maintenance costs are realized. I have seen in larger developments with lots of small units significant increases in condo fees due to the wear and tear of the building due to the high ratio of renters and turnover in the building -- this is particularily true in developments like Cityplace.

ROB LOVE

Buzzer

Great comments, it's interesting to hear everyone thoughts on condo sizes. Speaking to New Homes specifically, seeing less low rise, and the inventory that does hit the market is getting bigger. Good deals on a price per SF basis, but you need to have well above average income to afford. On the flip side, Condos have lost over 100SF on average since the introduction on the HST. Affordability has been helped by smaller condo units, but with less and less LR hitting the market we are going to need a more diverse selection (ie larger units in the mix) in the near future.