Saturday, October 26, 2013

Toronto Home Prices Hit Glass Ceiling

There seems to be no ceiling at all to the Home Prices.

Yet condo sales have actually declined since 2009;  The number of units sold in the 905 vs the 416 implies an exodus of shoppers but that may merely be a reflection of what can be purchased within commuting distance.

Three times as many homes are sold in the 905 at prices competing with Semi's in the City Center.   

This has led to the largest price gap on record between the various types of new homes. And it’s a dramatically upward price trend that shows no sign of easing, as new detached homes become ever more scarce across the GTA.
What can be done? Not much, unless you’re rewriting policy. The solution is evolution. The province’s push for intensification has triggered fundamental changes in the housing market and we will all need to adapt to this new environment.
Condominiums are becoming a more attractive — and certainly more affordable — housing option within this environment, particularly for first-time buyers.!/article/5269ee92cb00716fe017e9a4-toronto-detached-home-prices-hit-record-as-condo-gap-widens

George Carras RealNet talks about the first time buyers looking at condos as an alternative. The Millennials are not the home shoppers for condos or investment condos. [they are credit impaired with debt, student loans and a lack of FULL TIME jobs that pay sufficiently to qualify for mortgage debt.]  This market is being absorbed by the ZOOMERS who are:
  • Looking at downsizing eventually and buying a condo to invest till they are ready.
  • The Zoomers and CARP participants are being very careful and selective in their purchases. 
  • Selecting condos because Bungalows are just out of reach financially.
Which category applies to you?

Will you be buying a condo to prepare for your retirement?