Has The Toronto Condo Market Peaked?

Analysts continue to forecast the end of the Toronto Condo Market but it continues to be unstoppable. The average price for these new Condos are going up as well and prices continue to hold.

The second quarter will see an estimated 40 new Condominium projects released with more than 9.500 units, a record according to Toronto marketing firm, Urbanation. At the end of 2010 there were 286 new Condo projects , the biggest Condo market in North America.

There is always a concern for oversupply but Condos in Toronto continue to remain attractive to buyers who want to live in an urban environment. Several high-end Condos, Ritz Carlton, Four Seasons, Trump and the Shangri-La are ready to be completed within months of each other.

The average price for new Condos in the Greater Toronto Area (GTA) was $530 per square foot and in downtown Toronto the average price for a new Condo was $723 per square foot.

Higher prices could squeeze out investors and make it difficult for first time Condo buyers to enter the Toronto market.

Pictured above: The new and exciting Festival Tower Condos, for Sale or Rent, 80 John St. Toronto.

Related:

Toronto Downtown Condos Search

Toronto Luxury Condo Prices

Toronto Commercial Real Estate Attracts International Investors

Toronto Commercial Real Estate investment now ranks in the top 20 for investors.

Toronto Commercial Real Estate attracted $4-billion in foreign investment in 2010 according to a Investment summary from Cushman & Wakefield International.

The foreign investment was similar to amounts invested in Chicago, Moscow, Shanghai, Stockholm and Sydney.

The world leaders in Commercial Real Estate investments were:

• London $21.1-billion



• Tokyo $15.6-billion



• New York $11.8-billion

Investment activity in 2011, will continue to focus on more established centres as higher prices attract vendors to the Commercial Real Estate Market.

Toronto Downtown Condos Search

Financial District Condos Listings

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Toronto Resale Homes-No HST

The Toronto Housing Market continues to move forward, coming out of the recession and some recent Tax changes including the HST.

Toronto resale homes do not incur the HST other than some of the Real Estate services like commission fees and a few others.

Read the following report.

TORONTO, ONTARIO--(Marketwire - March 21, 2011) - Revenue Minister Sophia Aggelonitis and Toronto Real Estate Board President, Bill Johnston, today released a video explaining to prospective buyers the facts about the HST and the housing market.

The video highlights the fact that there is no HST on the purchase price of resale homes. Sales tax did not apply to the purchase price of resale homes under the previous PST, and it does not apply under the HST.

For new housing, additional tax only applies to the portion of the price above $400,000.

The Ontario Enhanced New Housing Rebate means that buyers of new homes receive a rebate of up to $24,000 regardless of the price of the new home. Buyers of new homes priced up to $400,000 (about three-quarters of new homes built in Ontario) on average pay no more – and possibly even less – tax than under the previous PST, where sales tax was hidden in the price.

"Buying a home is one of the most important investments a person will make in their lifetime. That's why I'm pleased to be working with TREB to provide information about purchasing a home in Ontario." — Minister of Revenue Sophia Aggelonitis

"REALTORS® are happy to help inform the public about the HST. It is important that the public understands that HST does not apply to the purchase price of a resale home." — Bill Johnston, President, Toronto Real Estate Board.

QUICK FACTS

The HST does not apply to the purchase price of resale homes. Sales tax did not apply to the purchase price of resale homes under the previous PST. In addition to not having HST on resale homes, a refund of Land Transfer Tax of up to $2,000 is available to first-time home buyers of resale homes.

Toronto Condos Price Increase Mid-March

Toronto Condos were up 8 per cent in the first two weeks of March 2011 to $352,057 in average price.

There were 4,138 home sales in the same period, down 5 per cent from the same time last year.

The average resale Toronto area price for the first two weeks in March was $460,196, up 4.6 per cent compared to the first two weeks of March 2010.

The Toronto Real Estate board is expecting the annual resale price growth to be between 3 and 5 per cent in 2011.

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Toronto Condos Lifestyle-California Dreaming

After a short stay in San Francisco we enjoyed downtown, especially Union Square and the Financial District.

One thing missing was the lifestyle we all enjoy in Toronto, especially the Toronto Condos lifestyle we all have grown to appreciate.

We have blogged before on the new Toronto Condo projects especially downtown and how these new Condos bring in a new sense of neighbourhood like restaurants, bars, nightclubs and more.

Another observation was that San Francisco shut down at 10pm, surprised because Toronto has areas available much later than that.

Toronto Condos lifestyle can only be a dream for residents living in San Francisco. Now Toronto needs a similar song, Toronto Dreaming!

Closing Costs for Toronto Condos

Closing costs for purchasing Toronto Condos can quickly ad up.

Your Bank has just qualified you for purchasing your new Toronto Condo but there are extra closing costs that have to be covered.

With a minimum of 5 per cent down you have to start budgeting for these extras.

For anyone buying in Toronto the land transfer tax can add a lot to these extras. The good news is the first-time buyers receive a rebate up to a maximum of $2000. The City of Toronto will also give a rebate of their land transfer tax to a maximum of 3,725.

Legal costs should run $1,500 to $2000. If a survey is required that should be approximately $500 for a house.

Your mortgage will require insurance if the deposit on your home is leas than 20 per cent.

The mortgage appraisal fee will set you back about $265 adding an additional cost to your pocket.

Property taxes, Condo fees and utilities are all calculated and the seller needs to be compensated for these prepaid bills.

Buying a Toronto Condo will probably be the biggest financial transaction of a buyers life so its wise to understand what is involved in purchasing their home.