The Toronto real estate market in February continued to see a decline in the average selling price year over year. It should be noted that the negative variances were due to the fact that the first quarter of 2017 saw a record breaking price appreciation that was not sustainable.
When looking at the broad TREB (Toronto Real Estate Board) statistics it should be noted that the average sales price varies greatly in terms of location and also type of home. The largest average sales price decline we have seen has been detached homes and geographically the largest average sales price decline has been in the 905 area codes.
One very important point to note is that the central Toronto condo market remains exceptionally robust with the rise in average price surpassing $645,195 vs $577,809 in 2017 an increase of 11.6%. Condominiums are the most affordable type of home and millennial are embracing more modest housing as an alternative to a long commute.
I made my annual trek to see the fourth public Winter Stations art exhibit at Kew Beach. This is the perfect outing for the family over March Break! Below are some photos but they are best appreciated in person. The stations will remain on Kew Beach until April 1st, 2018.
Pussy Hut – Martin Miler & Mo Zheng. This is a very current installation that reflects the #metoo movement. The vibrant pink catches your eye from afar and when you see this installation up close you can appreciate the work involved knitting this massive pink hat. It certainly was the place to be to celebrate International Women’s Day on March 8th.
Make Some Noise
Make Some Noise!!! – Alexandra Grieß & Jorel Heid – Hamburg, Germany. This interactive installation creates noise. There are levers and speakers and you are encouraged to interact to “Make Some Noise”. This installation was inspired by the intonarumori of the Italian futurist Luigi Rusoll0. Russollo created a sound box that was a shocking diversion from the traditional instruments and caused a huge outrage. The exhibit encourages people to change their normal behavioural pattern and enjoy the interaction with this sound box.
Revolution – OCAD University – Ben Chang, Anna Pogossyan, Amr Alzahabi, Carlos Chin, Iris Ho, Tracee Jia, Krystal Lum, Adria Maynard, Purvangi Patel, Judiette Vu –
Toronto, Ontario, Canada. There was a viewfinder for every height to look out on to Lake Ontario.
Obstacle – Kien Pham Surbiton – United Kingdom. This installation is a metaphor for the problems individuals face. It was fun to walk through and see the peek-a-boo views of Lake Ontario.
Nest – Ryerson University – Adrian Chiu, Arnel Espanol, Henry Mai – Toronto, Ontario, Canada. Nest was a cozy place to walk into for shelter from the winter elements.
Rising Up – University of Guelph – Alexander Good, Austin Huang, Kevin Sadlemyer, Marc Cote, Stephan Stelliga, Zixiang Chen, Nadia Amoroso, John Phillips, Sean Kelly – Guelph, Ontario, Canada. I really appreciated the architecture of this curvaceous installation.
Wind Station – Paul van den Berg & Joyce de Grauw – Rotterdam, Netherlands. This is a call to phase out nuclear power stations in favour of other energy sources such as wind. It was quite mesmerizing watching all the little windmills move with the breeze.
This was my quick pictorial from my visit to the Winter Stations at Kew Beach but as I had mentioned earlier it is worth the excursion to see it for yourselves. Have a wonderful March Break!
31 Douglas Drive is the perfect home for a growing family looking to live in North Rosedale. Please drop by the open house Saturday February 24th and Sunday February 25th from 2-4pm to see for yourself.
I have the perfect North Rosedale centre hall home coming to market in the next few days. This Rosedale home has retained the original character of a heritage home by preserving the lead glass windows and hardwood floors, yet the home has been updated for turn key living. It is the perfect centre hall layout with five bedrooms and five bathrooms on two and a half stories, with a quiet south facing low maintenance garden and parking for 2 cars.
The home has nicely proportioned principal rooms perfect when entertaining. For everyday living there is a wonderful sun filled main floor family room with gas fireplace that is steps down from and open to the crisp white kitchen. The kitchen is appointed with the signature Wolf range, simple white Caesarstone counters, stainless steel appliances, large chef’s island and pantry cupboard for storage. The second floor has the bonus of a spacious library that is large enough to operate as both an office and upper family space You can enjoy the gas fireplace while reading and relaxing in the evening. The Master bedroom has a walk-in closet that leads into a spacious ensuite washroom with heated floors, stand-alone tub, marble shower and double marble vanity. All of the bedrooms have good closet space and the home easily provides room for a family of 6 comfortably with no one having to share a room!
Recent updates: furnace, air conditioning, roof, sewage line to the city and basement drainage, kitchen counters, master en suite bathroom. A very good home inspection report is available for review. Feel free to contact me for further details or a private showing once the home is prepped.
For those looking for the perfect opportunity in the Rosedale community this home is the one. Rosedale Park is so close, the shops and amenities of Summerhill Avenue including Summerhill Market are a walk away and the TTC is at the end of the street. On a good weather day, it is an easy stroll to Rosedale Subway and the shops and restaurants on Yonge Street.
List Price $3,695,000 Lot Size 44.25 Feet by 137 Feet
OPEN HOUSE : Saturday February 24th and Sunday February 25th from 2pm to 4pm
The January average sales price is down year over year however we must make note that last year’s sales numbers were unprecedented! Volumes were also down with the number of units that sold were 4,019 vs 5,155 in 2017.
Statistics can always be deceiving. What I am seeing in the market are new listings selling very quickly and many properties are selling over the listed price. Realtors are hesitant having an offer date in some instances so the homes are sold in one to two days on market. The condo market remains frothy and over ask in many instances. If you are a buyer please ensure you have your financing arranged so you are ready to act quickly. Central Toronto remains strong despite the news stories!
Speaking of new listings I have a property coming out soon in North Rosedale that is the perfect launch into the Rosedale community that is co-listed with Doug Gubitz of Chestnut Park details to follow! Please feel free to contact me for more details.
By now, everyone is probably well aware that Toronto Union Station is going through a huge transformation and restoration. It is exciting to see this historic building that has functioned purely as a conduit for commuters become a space for people to congregate. Toronto Dominion Bank is the lead sponsor of this project and is working on creative ways to engage people within Union Station as well as to the extensive restaurant and retail options.Union Speaks was created to engage people in a healthy conversation about issues facing our city and beyond. Each Union Speaks event will have a different theme and will take place every few months in the west wing of Union Station. The next event will be held in the spring.
The Toronto Union redevelopment is extremely respectful that the station is a world heritage site with history dating back to First Nations, so the evening began with an Indigenous song by a First Nations woman who spoke of the Objibwa, Iroquois and Wyandot people’s history on the Toronto Union site. She mentioned the many downtown street names such as Spadina that have Indigenous roots.
The first speaker was Vanessa McDonald, VP of Brand Strategy and Partnerships for Toronto Union . Vanessa gave some clarity on the transformation of Union Station from an near obsolete space into a dynamic environment for people to congregate, dine, shop and just meet up with friends. Union has evolved beyond a mere conduit for commuters and many interesting shops and restaurants have already opened. Union Chicken and Amano Pasta are both sit-down restaurants with the option for take-out. They both will offer brunch and breakfast in addition to their extensive lunch and dinner choices. The Peace Collective, The Naked Beauty Bar, Chocolate X chocolatier are just a few of the premier retail offerings opening at Union. As you exit the Go train there is a world of options to enjoy at Union prior to entering The Path. Condo dwellers can also enjoy all these new amenities within Union Station.
Union Draws the Last Sunday of Every Month
In addition to Union Speaks, they also host Union Draws where you can come to the station to learn to draw and sketch. There is no better place to start learning about perspective than than in this stunning historic space. Union Draws takes place on the last Sunday of every month and this past Sunday the session was lead by Alexander Josephson of Partisans Architecture, the firm that has had their hand in the renovations of the retail spaces. In the summer months, once the construction is done, Union Summer market will return to Front Street offering food, music and events to make lunch hour a little more interesting. Both of these events are sponsored by Toronto Dominion Bank.
The Design Exchange
The second speaker was Shauna Levy of the Design Exchange. A 2014 exhibit at the Design Exchange, This is Not a Toy,was guest curated byPharrell Williams. When Pharrell was asked why he would volunteer his time on this endeavour, his answer was that he wants contemporary art to be accessible to everyone and this has become Shauna’s mission. Shauna shared with us the story of Edit, the exhibit that was created in an abandoned soap factory in the Lower East Don Lands last year and was tremendously successful in exposing the general public to art and design. Shauna is always thinking of what she can do engage Toronto and Toronto Union is a the perfect venue to showcase both art and design to the population. She is a strong supporter of the restoration and transformation of Union as she believes in re-purposing old buildings rather than demolishing them. Her love of Heatherwick has her dreaming of transforming the old flour silos on the lake into an incredible building as it has been done by Heatherwick in Capetown. She mentioned Bruce Mau, the well-known Canadian designer, and his involvement in Edit as well as Partisans, an up-and-coming architecture firm involved in Toronto Union’s transformation. I must say Toronto is well looked after with Shauna relentlessly striving to make art and design a part of everyone’s life here.
East Habour development
The next speaker was Derek Goring, the VP Development of East Harbour with First Gulf. It was exciting to hear about the work that First Gulf has done collaborating with the City of Toronto while working on their plan of slowly and organically re-developing the Lower East Don Lands into an entire new community that will become quite self sufficient. The key to this development is transportation. First Gulf has worked with the city to devise a plan to change the path of the Don Valley as it connects to the Gardiner expressway and taking down the long ramp that leads you to the neighbourhoods of Leslieville and The Beach from the Gardiner. This will open up land for development and make the neighbourhood more welcoming and attractive. They have also worked with the city to extend the subway and TTC to this area that historically has been very removed from any form of public transport. Derek did reference the Canary Wharf project in London as a parallel, however he qualified that this development is set up for success!
Further East Harbour Details:
60 Acres, Canada’s largest planned commercial development
11 million square feet of office and institutional space
2 million square feet of retail, food, entertainment and cultural space
More than 70,000 jobs
A new multi-modal transit hub
Adaptable and innovative building systems
Extensive parks, public squares and green spaces
Designed to respond to contemporary trends
Ever-changing environment using temporary exhibits, pop-up shops and events
Open and walkable retail streets
A community within the city that is active 24/7
Mix of indoor, weather-protected and street-oriented retail that will create an all- season environment
East Harbour is currently the “best located, worst connected” site in the city
In order to unlock the site for the development, East Harbour relies on significant enabling infrastructure referred to as 3 Rs: Road, Rail and River
From 2014-2017, First Gulf worked with all three levels of government and all interested stakeholders to achieve approval and funding for these projects and that has been achieved
Reconfiguring the Gardiner Expressway to accommodate a new intersection at the Don Roadway
Provide direct access to and from East Harbour from the DVP
Removal of all Lakeshore Boulevard ramps allowing for the extension of Broadview Avenue through East Harbour into the Port Lands
A multi-modal transit hub
Highest level of public transit service
2 commuter lines (GO/Regional express rail/SmartTrack) with subway-type frequency
1 subway relief line
2 LRTs (Broadview and Queen’s Quay)
Multiple bus lines
Shuttle service to Union Station in less than 5 minutes
The Don Mouth naturalization project
East Harbour is currently located in a floodplain, which restricts East Harbour from being developed
The naturalization project will provide permanent flood protection, removing East Harbour from the flood plain and allowing for development
It also protects approximately 700 acres in the port lands
All three levels of government have committed to fund this $1.3 billion project
2019 Construction begins
2021 Initial occupancy
TD Bank sponsorship
The last speaker was Tyrrell Schmitt, VP Global Brand and Customer Experience, TD Bank. It was great to see how engaged Toronto Dominion Bank is in terms of community events and engagement within Toronto Union, through initiatives such as sponsoring cell phone charging stations, the Union Speaks series, gift-wrapping at Christmas and greeters to ensure people can navigate through the construction. Their enthusiasm to transform Union and create a community was wonderful to hear.
I suggest you start watching for upcoming events at Union Station and enjoy watching as this transformation unfolds!
Shauna Levy referenced two great Jane Jacobs quotes:
“New ideas use old buildings”
“Designing a dream city is easy; rebuilding a living one takes imagination”
Collectively Torontonians are carrying on Jane Jacobs’ work using their imaginations to grow this city into a vibrant place to live that celebrates both multi-culturalism and diversity. I am very excited to see the East Harbour development unfold to finish the re-gentrification of what had been derelict waterfront. I am also looking forward to more Design Exchange events and all the upcoming events at Toronto Union Station!
I felt I needed to write about the new stress test that will be used as of January 1st, 2017 to qualify home purchasers for mortgages. These stress tests are designed to protect home buyers from mortgage default in a rising interest rate environment. The government has introduced a new cushion that will affect all uninsured mortgages (those mortgages with a down payment of 20% as well as all mortgage refinances).
Home buyers now qualify at the greater of the Bank of Canada posted rate (4.99%) or their contract rate +2%. This means if your rate is 3.39% you would be qualifying at a rate of 5.39%.
Signed purchase and sales agreements dated prior to January 1st qualify under the old rules
Some Examples of the Effects of the New Rules
Based on an interest rate of 3.39% (stress test qualifying you at a rate of 5.39%) and an amortization of 30 years.
$900,000 purchase price with a 20% down payment ($180,000 down) with $5,000 in taxes. Mortgage amount $720,000. Income needed to qualify before the stress test was $105,000 and after the new street test $120,000, an increase of $15,000
$1.5 million purchase price with a 20% down payment ($300,000) Mortgage amount $1,200,000 with $8,000 in taxes. Income needed to qualify before the stress test $170,000 and after $205,000, an increase of $35,000
$2.5 million purchase price with a 20% down payment ($500,000) Mortgage amount $2,000,000 with $10,000 in taxes. Income needed before the stress test $270,000 and after the stress test $335,000. An increase of $65,000
What You Qualify for Under the New Rules
Using a 30 year amortization, rate of 3.39% (qualifying at 5.39%) and taxes set at $7,000 with 20% down payment
A couple with a combined income of $250,000 could afford to pay $2,350,000 for a home before the stress testwould now qualify for a home priced at $1,880,000
A couple with a combined income of $150,000 could afford a $1,050,000 for a home before the stress test would now qualify for priced at $840,000
A couple with a combined income of $90,000 could afford to pay $720,000 before the stress test would now qualify for a home priced at $575,000
We do need to make note that on January 17, 2018 the Bank of Canada increased its overnight lending rate to 1.25% from 1%. The 6 major banks have followed their lead, and increased their prime rate.
Current prime rates: Scotiabank 3.45% RBC 3.45% TD 3.6%
Note that changes in prime will increase variable rate interest rates which are generally set at prime -0.50%. Scotiabank had a variable rate of 2.7% before the stress tests and after the stress test the variable rate mortgages are 2.95%
Insured mortgages are only available under $1 million and are for purchases with a down payment of less than 20%. The minimum payment is 5% on the first $500,000 and 10% down on the difference, up to $1 million. Those looking for an insured mortgage are qualified at the Bank of Canada rate of 4.99% or their contract rate, whichever is higher. If your contract rate is 3.14% you still have to be able to qualify at 4.99% for you mortgage. This may price first time home buyers out of the market if their only hope of homeownership was through insured mortgages.
Thank you to Darlene Hanley of Oriana Financial for such a comprehensive explanation of the new stress test rules and what they do to home purchasing power.
I had the pleasure of attending Toronto’s Interior Design Show last Thursday night with my daughters. I am so happy they also enjoy exploring interior design! It is always nice to do a walk through this annual design show to get ideas for your own home and it is an excellent resource if you are about to undertake a renovation. It is very handy to have so many vendors at the same place and to see the products you may have seen online or in a magazine.
Design Show Trends
Made Made in Canada
There were many design booths that offered Made in Canada options for that mid-century modern look with a twist. The above photo is Small Batch Solid wood Furniture made locally in Toroto by Charuk and Ford. You don’t have to invest in the “named” mid-century design to get that look and sometimes it is nice to have something more unique. 608 had two great Scandinavian inspired chair designs N22 and the Noce Series by Evan Bare.
Retro is still very popular in the design world.
Smeg is still a hot item from toasters to fridges including a limited edition Dolce and Gabbana fridge for those looking for something whimsical to spice up a drab kitchen.
Appliances are a very important part of any kitchen renovation. Luxury homes require built-in coffee makers, microwaves, fridge and freezer drawers, and warming drawers integrated into the kitchen design. It was fun to see the new technology in the appliance world. Wolf and Subzero remain dominant players in the appliance market however Miele is producing some quality appliances. Miele actually had a vacuum display showcasing the evolution of the vacuum cleaner. I do believe their vacuums are one of the best on the market today.
Clever Design for Small Space Living
With the trend for small space living, many of the vendors offer clever storage solutions. Kroft had a cleaver minimalist design for hanging. I also really loved this shoe storage idea.
There is also a trend for multipurpose furnishing. We saw a murphy bed transformed from a simple bookshelf to make full use of your space if you are living in a micro-apartment. The bar below is perfect for a small condo that lacks the cupboards required for storage. This portable bar is both aesthetic and functional and can move with you–well worth the investment.
Pre-Fab is now Design Savvy and Cool
Pre-fab has come a long way! I was very impressed with The Bunkie Co. which is following the trend for small space living. The Bunkie Co touts that these pre-fab small space buildings do not require a permit in almost all of North America. I would still do my due diligence on what your local building by-laws are prior to proceeding. I thought one of these could make the perfect gym space at a cottage! In fact on their website a cottage gym in Lake of Bays is showcased.
Axiom by Turkel Design and Dwell Prefab have a collaborated to create very contemporary and design-savvy larger prefabricated buildings for today’s modern lifestyle that take the environment into consideration.
Patterns are in!
Patterned tiles are very popular for flooring and also walls and table mats! I was impressed with Locus Vie + Hidraulik who create high quality and durable floor mats and table mats. These mats are heat, bacterial and stain resistant in addition to coming in an assortment of stunning patterns. There was also a vendor that designs custom vinyl tiles for a wall surface.
Black is Bold
Black and white create a great contrast, especially in a bathroom. This stand- alone matte black tub and shower with black trim create a real statement.
Carpets are an Art Form
Carpets are art pieces in addition to a soft surface for your feet. W Interiors had a beautiful art installation of hung carpets that looked like watercolours in addition to a stunning carpet of a graffiti art tunnel.
Lighting has become an art form which we saw at last year’s IDS with the Gweillo light and this year we saw with the Transforma light by Jacob Antoni, the focal piece of the Ontario Wood display. The Anony Highwire Pendant was another showstopper that is so new it isn’t on their website yet!
Gas fireplaces are still big and there was a huge variety, from the pebble look with flames to the traditional. I was most impressed with the Stuv fireplaces that had a clean, contemporary look. Stuv produces both gas and woodburning fireplaces and wood stoves.
A very slick looking elevator was on display manufactured by Savaria that clearly understands that aging baby boomers want aesthetic design when it comes to any lifts in their private residences.
Outdoor space is very important even with our Canadian climate. This heated fibreglass mid-century inspired bucket chair below certainly warms you up! A few of these chairs would be a nice addition to the stand-alone heaters and outdoor fireplaces used to extend patio season.
Small Batch Aritsans
Fine design can be in the little details from a notebook to serving implements. It was interesting to see all the creativity at the Design Boom and Studio North are of the IDS show.
Bring a Hint of Nature to your Home!
Succulents are still a thing! These sculptural plants are the perfect way to bring nature indoors in any space as they are very low maintenance.
I hope I have provided you some ideas for around your home. I will be attending the Artist Project in February and shall highlight some affordable art I spot at the show.
Welcome to 2018! We can now focus on getting back to fitness Toronto! I am not sure about you but I have missed a few workouts and eaten a few too many shortbread. January is resolution time! I thought I would highlight a few gyms in the city to get you back to a fitness regime. There are so many Toronto fitness opportunities I can only touch on a few that I hope you can work into your schedule.
Totum Life Science is run by Tim and Stacy Irvine who gained their experience at the former Toronto Fitnes Institute. They opened Totum in the mid-90s looking to provide science based fitness and health to their clients. Totum is a great spot to get personal one on one training. It is conveniently located at Yonge and Roxborough with an additional location north on the same block above the old Roots, just under Roots Yoga. Their trainers provide a very comprehensive approach to training that is based on both mobility and strength to provide for healthy aging. I have trained at Totum for years and I do believe I remain as active and injury free as I am as a result of this style of training. For those looking for a stretch class that is more scientific than you basic yoga class David Torrance offers a great Kin Stretch class on Wednesday nights at 6:15pm, you will learn a bit about body mechanics as you stretch.
Ultimate Athletics has an extensive repertoire of classes ranging from TRX, kettlebell, rowing, kickboxing, aerobics, stretch and barre to name just a few! The gym is run by fitness couple extraordinaire Vlad Radanovic and Paula Ryff. They have quite the following! It is a very positive and energetic club run by manager Aja Zylberberg. Fun fact: they have a great selection of athletic wear sourced by Aja who has an eye for fashion.
Ferris 360 is a great place for the ultimate circuit class with lots of cardio included! There are a variety of times throughout the day so you can work them easily into any schedule. The location is a bonus as it is steps from Davisville station. For those that don’t want to pay for the one on one training these classes certainly cover all bases for a full strengthen combined with cardio.
For those inclined to do Crossfit Crossfit Metric on Mount Pleasant just south of Eglinton is a good option. The majority of the staff are ex-military and they certainly know how to push people to their maximum. Crossfire Metric has both classes and personal training. I am currently training here with a former yoga instructor turned cross-fit junkie, Kathryn Griffiths Kearsey who you can follow on Instagram Toronto Cross Fit Project. Kathryn’s husband David Kearsey, is also a part of the Toronto Cross Fit project. David (DK) is a sought after Toronto trainer that works with clients at Yorkville’s Crossfit YKV and for the downton dweller he trains clients at Crossfit 416 . Kathryn and DK are educated trainers that know how to push people to their limits without injury. They are very knowledgeable on how diet combined with training creates optimal results. There are many Crossfit gyms in Toronto just be mindful that you choose a gym with well educated staff!
Cardio Junkies (I know there are a few out there, myself included.)
Soul Cycle, Spin Co and Rocket Cycle all have an extensive list of spin classes with great music and instructors. My little secret are Shelby Pilot’s classes at Totum for those in Rosedale/Summerhill area as the bikes have a read out to know how hard you worked and I enjoy the music that is retro and not quite as deafening relative to Spin Co and Soul cycle.
Barry’s Boot Camp is an amazing place for interval training. The class alternates between floor work and aggressive intervals on a treadmill. This is not for the faint at heart but guaranteed to increase your endurance levels!
Scullhouse is a rowing based workout that claims to burn more calories per hour than spinning, running or swimming and provides a full body workout. Worth a try for those seeking high intensity yet low impact exercise.
There are so many triathlon races in Ontario through out the spring and summer. Toronto Triathlon takes place in July. Trisport Canada and Multisport Canada have triathlon races you can choose through out Ontario. It offers a great excuse to escape your downtown condo urban life to enjoy rural Ontario. Toronto Triathlon Club is the perfect way to train for these events.
If you enjoy winter in Muskoka Tri-Lakes Training is now open by appointment year round and there are also weeknight fitness classes. Once the May long weekend hits the gym offers weekend classes and in July and August there are daily classes. Tri-Lakes is also offer a Triathlon Clinic at Cleveland’s House, detail are found on their website.
I hope this list has inspired you to get out there, get fit and have fun!
Happy New Year and please have a look at my December 2017 Toronto Real Estate Market Report that highlights the luxury real estate sales in Toronto in 2017. Be aware that in January the new stress tests for conventional mortgages are implemented by the banks so before you buy make sure you know what you qualify for. If you need any assistance please do not hesitate to contact me.
One would say that 2017 was a wild ride for Toronto Real Estate. We saw an extremely tight housing supply drive prices up to an all time high in April which caused government intervention. In order to curb the sharp rise in property prices in the GTA the Ontario Government implemented the Fair Housing Plan. It created new rules for landlords including rent price control and a foreign buyer’s tax of 15%. One could say this intervention did help as prices have retreated from those manic highs in the fall. There are still some questions as the whether the new tenancy rules have hurt the rental supply. The new rent control rules appear to have contributed to the continued tight rental supply in the city. Rental housing is now unaffordable to many people in the downtown core.
Year over Year the average sale price was still up from 2016 at $735,000 December 2017 vs. $730,000 December 2016. This is much lower than the peak we saw at the end of April 2017 where the average price cleared $900,000. The average sale price in central Toronto for December 2017 was $741,000. A detached home in central Toronto is $1.25 million vs $910,000 in the 905 area. At the April peak were almost on par. Central Toronto remains a strong market (please see the table below) with the bulk of the correction occurring in the 905 area code. The biggest change we have seen is a much needed increase in listings from only 4166 properties listed last December to 6330 December 2017. Most of this inventory increase is outside central Toronto which explains the larger price corrections in those areas.
In 2018 we shall see what effect the introduction of the new stress tests for conventional mortgages will have on the markets. It will probably cause some pressure on the lower end of the market which is comprised for the most part of condominiums. To clarify the new stress test requires banks to qualify mortgages assuming the rates are 2% higher than current interest rates. This is a prudent thing to do when looking to borrow money. It ensures that you can afford your mortgage if interest rates increase when your mortgage is up for renewal in 5 years. The luxury market will probably not be as affected as wealthy purchasers are not looking for financing and if they are they would not be as leveraged as the entry level buyer.
I thought at this time I should highlight the 2017 luxury homessales in select Toronto neighbourhoods.
Bridle Path: 7 sales over $10 million and 46 sales over $5 million
Saint Andrew’s: 17 sales over $5 million
Rosedale: 3 sales just shy of $10 million and 17 sales over $5 million
Forest Hill: 1 sale over $10 million and 15 sales over $5 million
Annex: 8 sales over $5 million
Casa Loma: 2 sales over $5 million
Yonge and St Clair: 1 sale over $5 million
Lawrence Park: 14 sales over $5 million
Condo sales are now the largest part of the Toronto MLS sales making up 65% of all Toronto Real Estate Board transactions on MLS as they provide the most affordable option for property ownership. The Luxury Condo market in Toronto however, is gaining traction in Toronto. People are beginning to embrace the turn key lifestyle so we shall see an increase in the luxury condominium sales over the next few years. Condos in Toronto were originally built to provide an affordable alternative owning a home. Now the market is demanding larger square footage, luxury and ammenities when purchasing condominiums. This has created many luxury pre-construction sales, not on MLS. Camrost Yorkville Residences, Mizrahi the One, 200 Russell Hill Road to name a few.
There were 13 Condominium sales on MLS over $5 million and 1 sale on MLS sale over $10 million. This statistic is a little deceiving as the pre-construction sales are not included in the MLS system and also know in the luxury market quite often properties do sell off market. The Four Sesason Residences Penthouse suite that was offered for sale for $36 million sold firm at the end of 2017 off market as an example.
Of the 13 condominium sales over $5 million 8 sales were in the Yorkville-Bloor Street vicinity, including the penthouse unit in The Florian that sold on MLS over $10 million. Only 2 sales over $5,ooo,000 were downtown, 1 sale was at Yonge and St Clair and 2 were in the Rosedale area.
There were 133 condo sales in Central Toronto between $2,000,000 and $5,000,000 of which 59 sales were in the downtown area and 52 of them were in the Yorkville area.
Should you require assistance or more detailed sales information, please do not hesitate to contact me. Having timely market knowledge allows for a savvy investment decision when it comes to listing or buying your home.
Happy New Year!
Work 416-925-9191 Cell 416-461-3114 firstname.lastname@example.org