Condo Pro: 2012 A Great Year For Condo Sales

By Barbara Lawlor

’Tis the season when we look back over the past 12 months to reflect on its highlights, and this year we can celebrate a lot of success in the condominium market in the Greater Toronto Area. As we round the corner to the holidays, I encourage you to focus on the fact that 2012 will go down as one of the top five years in our history.  I suggest you avoid getting caught up in the negative media that insist on continually comparing this year’s figures to those of last year, when we reached a historic peak for condominium sales in North America, let alone Toronto.

The momentum carried into 2012 as we had a first quarter with the highest number of condo sales of any first quarter on record. Since then, things have settled into a less frantic, steadier pace. According to Urbanation, the market is moving ahead in a more stable, steady pace than the whirlwind we experienced in 2011. Relatively speaking, this makes for a healthier economic climate when it comes to condo sales. Realistically, our market here is still robust, and that speaks volumes for people’s confidence in our economy.

At Baker Real Estate Incorporated over the past year, we have been marching right along, selling evenly with our previous history, but according to the headlines, you would have thought the bottom was falling out of the market. Just look at the realities - and they are all positive. For one thing, our construction industry can build about 15,000 condominiums maximum in any given year, and we’re selling more than that number. Within a few years, there will be a demand that outperforms supply – the opposite of many media predictions. And why would the demand diminish, with the continuation of strong immigration into the GTA? We receive up to 100,000 newcomers each year, and these people have to live somewhere.   Also, condominiums are now the only affordable housing option in the GTA.

We have also seen a tightening up of mortgage-lending rules, and although that may have made it possible for some potential buyers to put their plans on temporary hold, many people simply purchased smaller suites than they had originally planned. With today’s brilliant layouts, even compact suites are quite livable. And remember – our conservative Canadian banking policies are what saved us from the severe housing crisis the U.S. went through. Having a system of checks and balances in order for people to qualify for major purchases such as real estate is good business. And speaking of banks, can you believe how low our mortgage rates are? And developers have not had to drop prices during 2012, which is another indication of market health. Add to that the fact that Toronto prices have not skyrocketed to the degree of other major cities in the world, and we are definitely in the scenario of “slow and steady wins the race.”

Of course, condominiums now appeal to the gamut of purchasers, from first-time buyers to empty-nesters, but the ongoing right-sizing of baby-boomers will be a big contributor to keeping our market vibrant for quite some time. Potential purchasers should get into the market NOW. In addition to taking advantage of low mortgage rates, they can benefit from current prices. Condos are still the affordable choice in the GTA and the preferred lifestyle choice for a growing number of Canadians.

So as we look back on 2012, let’s be thankful for the wonderful condominium market we enjoy here, and let’s look forward to another good year. The momentum is strong, we are likely to see upward pressure from our ongoing success.

Whatever your seasonal traditions, I wish you happiness during this special time, health and prosperity in the new year – and may you be home for the holidays!

Barbara Lawlor is president of Baker Real Estate Incorporated and an in-demand columnist and speaker. A member of the Baker team since 1993, she oversees the marketing and sales of condominium developments in the GTA and overseas. Keep current with The Baker Blog at blog.bakerrealestate.com