Condo Lifestyle makes good cents.

In the following report you will see that Condos are no longer a market waiting to happen. They are here now and a force to be reckoned with. As reported earlier in the year Condo sales are in double digits and appealing not only to the first time buyer but the baby boomers are looking for larger units to replace their homes. 2008 will see a continuing pace for all of these reasons.

ReMax Condominium Report 2007
Greater Toronto Area

Unprecedented demand for condominium apartments and town homes buoyed solid year-over-year appreciation in both sales and price in the Greater Toronto Area (GTA) in 2007. Condominium sales have climbed 14 per cent to 25,072 units, up from 21,950
one year ago—and now represent approximately one in every three homes sold (30.5 per cent) in the GTA. The upward trend has been particularly evident in the downtown core, where double-digit increases in condominium values occurred for the first time in
the last decade. 2007 also marked the first year that resale condominium apartments and town homes in the downtown core experienced bidding wars, especially on product priced between $300,000 to$400,000. Low inventory levels have been in large part responsible for the upswing, with well-priced listings generating multiple offers. Demand has outpaced supply of condominium apartments and town homes
in many core neighbourhoods throughout the year. In Cabbagetown, for example, the sales-to-listings ratio for town homes has been well over 100 per cent.
The upper-end of the market has been particularly vibrant, with 126 sales reported over the $1 million mark so far this year, up close to 97 per cent from 64 sales one year earlier. New condominium product has been extremely well-received, with line-ups at sales centres the norm for most of 2007. The most successful launches—1 Bloor, Festival Tower, L Tower and Pier 27—were also the priciest at price per square foot from $600—$1,000. Most new projects are in the $450 dollar per square foot range. Across the GTA,
condominium units priced between $200,000 and $300,000 were most popular, with 43 per cent of apartment sales and 48 per cent of town home sales occurring in this price range. Affordability continued to draw first-time buyers to condominium ownership this year. Close to 32 per cent of apartment and 28 per cent of town home sales occurred under the $200,000
price point. Entry-level purchasers lead the charge for condominium product in 2007, stimulating sales of apartments and town homes from Scarborough to Mississauga. Demand for town homes continued to escalate, especially in areas such as Liberty Village, where more and more young families have discovered the advantages of downtown living. Developers
have also responded to growing demand from aging baby boomers for larger units situated in bluechip neighbourhoods. The impact is best illustrated in the Yorkville area where units in several condominium buildings under construction now start at a cool $1 million. Investors have also jumped into the fray, now representing a sizable segment of the downtown market. In fact, an estimated 60 to 85 per cent of sales in new condominium developments involved investors this year, up from 30 to 50 per cent in 2006. The condominium lifestyle has gained
considerable momentum in recent years and the market still has room to grow. Further price
appreciation is anticipated in the year ahead, with the most substantial increases forecast for the downtown core. Given a continuation of current economic fundamentals, sales of both apartment and town house units are also expected to climb, rising by three
to five per cent by year-end 2008.

For more information please contact:

Kathy Gordon
Sales Representative
RE/MAX Professionals Inc., Brokerage
270 The Kingsway Suite 200, Toronto, Ontario M9A 3T7

BUS (416) 236-1241
FAX (416) 231-0563
E-MAIL kathy@etobicokehomes4sale.com
Website: etobicokehomes4sale.com