Condo Pro: The Real Market Story

By Barbara Lawlor

In a world where we are bombarded with often-conflicting media reports through television, radio, the Internet and in print, it can be challenging to know what to believe. The condominium market in the Greater Toronto Area is an example of a topic that is experiencing wildly different opinions expressed by various media sources. As President of Baker Real Estate Incorporated, I live in the condo world every day, so for me, reality is what I see and experience. And I see a healthy, vibrant market that is on a trajectory to a robust year.

We all know that 2011 was absolutely incredible – a peak year when it comes to condo sales across the GTA, and a hard act to follow. This year, the market is stabilizing, which is always a good sign for longevity. We still have a very active market, and as someone on the front line, I can tell you that our sales are substantial compared to last year. According to Urbanation, an independent organization that tracks Toronto’s high-rise market, during January through March 2012, the new condominium market in the Toronto CMA saw 6,070 sales - the highest of any first quarter on record. There were 338 active projects and 84,698 active units during that quarter - also record highs. With 100,000 new residents settling in the GTA each year, we continue to build housing to meet that demand.

The point is, if you are thinking of purchasing a condominium in the GTA, do your research – but gather your information carefully and fairly. The new home real estate market has been the target of negative reports from “experts” for decades – and often they were wrong. Take everything you hear and read with a grain of salt, and consider the source. Have the headlines and reports you read, placed their comments within the correct context of the situation? Do statistics back up their claims?

Remember, consumers create the economy, and obviously the demand for condominiums is still vibrant. Our municipal and provincial governments have mandated developers to build vertically, and in the GTA, we are running out of land for low-rise homes. The demand continues for condos, and will for many years to come.

Newcomers often select condominiums because they are used to apartment-style living. Condos remain a prime choice for first-time buyers because they are simply more affordable. The baby boomers continue to retire, and many seek carefree condominium living so they can make the most of their long-awaited leisure time. Professional singles and couples who work in Toronto enjoy living close to their places of employment in buildings where chores like gardening and snow removal are done for them. Single women opt for condominiums because of the concierge “eyes on the street” and the advanced security features in today’s buildings. Even families are discovering the benefits of condo living, with wonderful amenities right in the building and public transportation at the doorstep for older children to get around.

In the GTA, there is something for everyone in the way of condominiums. Live in the hub of downtown, or on the city’s periphery in Etobicoke or Scarborough. Select a building in any of the fabulous 905 areas for an urban/suburban lifestyle. Live on the lake, close to entertainment venues, on a golf course … the variety is amazing.

So when you read and listen to real estate news, gather your information from a variety of sources and remember that home sales are cyclical. Look at statistics from BILD and Urbanation. When a report contains the word “bubble” ask whether it is explained, because apparently there are differing opinions on what constitutes that situation. Be especially careful of the Internet, where anyone can post anything, whether or not it is based in fact.

We have been hearing about the demise of the condominium market in Toronto for years, and yet look at what’s happening. A banner year in 2011 has ushered in another healthy year thus far, in 2012.