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April 2010 Toronto Loft Market Report

13 Apr 2010
April 2010 Toronto Loft Market Report

 April 2010 – Toronto Loft Market Summary

 

For those of us at MrLOFT.ca, the Spring season in Toronto is one of our favourite times of the year! Not only does it tend to herald some warmer weather, but it usually provides a more active resale market as homeowners or prospective buyers decide it’s time to make that move.  After all, Spring is the season of growth and change.

 

This year seems to be no different.  The warmer weather has arrived, allowing loft owners to take advantage of balconies, terraces, rooftop patios or nearby parks, and market transaction activity is also hotting up.  Many prospective Loft buyers were left frustrated over the past six months due to limited available inventory.  This coupled with mortgage rates at 50-year lows have seen those units which were offered to the market being snapped up quickly with many multiple offer scenarios.  Of course, such an environment puts upward pressure on prices and while there may be offers on the table from numerous eager buyers, there can only be one successful bid.

 

However, the market has responded with a dramatic rise in listings over recent weeks means we are entering a more balanced environment. Transaction activity is strong and prices continue to outperform those witnessed last year.  The growth in listings simply offers buyers a wider range of choice and reduces some of the pressure to make instant, on-the-spot decisions or else risk losing out. As of early april loft inventory is up 100% from earlier this year and there finally good opportunities for Buyers.

 

The overall residential real estate market in Toronto is also in very good health, with the Toronto Real Estate Board recently reporting that total sales volume during the first quarter of the year was the highest on record (22,418 sales).  They predict that average prices will continue to grow throughout the rest of 2010, while expecting the steep rate of incline to smooth out somewhat as demand and supply become more aligned.

 

Many of the aforementioned buyers who were frustrated in recent months - to the extent they decided to postpone their purchase - are now being inspired back into the more accessible market.

 

Additionally, recent activity has been stimulated by the upcoming implementation of the new HST on July 1st.  The effect seems to have inspired those who expect to be purchasing with the next year to step up their search and close on a property before the changes come into effect.  It should be noted that the new HST will be applicable on new construction projects only.  Resale purchasers will be affected via the increased tax on legal fees and other closing costs or services, but not as a tax on the overall sale price.  For this reason, it is not expected that the HST’s implementation will have a significant ongoing impact on the market as we move through the remainder of 2010.

 

 

The table below illustrates overall activity within twelve popular Toronto Loft buildings during the first four months of the year, and compares that against the same figures for the entirety of 2009.  The pro-rata transaction volumes are well up over last year in most buildings surveyed.

 

 

BUILDING

ADDRESS

JAN - APR 2010

FULL YEAR 2009

UNITS LISTED

# SALES

LOW PRICE

HIGH PRICE

UNITS LISTED

# SALES

LOW PRICE

HIGH PRICE

Candy Factory

993 Queen Street W

7

5

492,900

980,900

13

11

417,000

800,000

Chocolate Lofts

955 Queen Street W

10

7

295,000

575,000

10

9

275,000

529,900

Massey Harris Lofts

915 King Street W

5

2

317,300

335,000

2

2

292,500

365,600

Brewery Lofts

90 Sumach Street

3

1

689,000

689,000

11

6

420,000

645,000

Broadview Lofts

68 Broadview Avenue

9

8

113,000

540,000

28

23

309,900

740,000

Tip Top Lofts

637 Lakeshore Boulevard W

11

3

299,000

700,000

12

5

265,000

498,000

Toy Factory

43 Hanna Avenue

19

9

385,000

678,000

53

43

293,000

715,500

Robert Watson Lofts

363/369 Sorauren Avenue

10

6

274,900

540,000

23

19

245,000

575,000

Pure Spirit Lofts

33 Mill Street 

54

32

280,000

590,000

71

61

240,000

725,000

Kensington Market Lofts

160 Baldwin & 21 Nassau

9

5

320,000

503,000

12

11

235,000

620,000

Merchandise Lofts

135 & 155 Dalhousie Street

18

12

275,000

690,000

52

48

225,000

795,000

DNA Lofts

1005 King Street W & 1 Shaw Street

35

29

229,900

775,000

95

81

205,000

830,000

*-- The difference between the 'Units Listed' and '# Sales' units represent those lofts which were either removed from the market without selling, or are currently active listings.

 

 

As you may have noticed, the City is abundant with cranes and construction site boardings as the development of new projects continues unabated.  Many MrLOFT.ca clients have been asking about the relationship between the asking prices for new-launch buildings, versus existing, ready-to-occupy properties.  

 

Traditionally, investors would expect a risk-return premium, or discounted price when purchasing a unit within a newly launched project rather than an existing building.  The obvious difference being that your new unit will not fully materialize for a couple of years, and so there are some risks involved that do not factor in when you buy a unit that you can walk around, see, feel and move into shortly thereafter.  In the current climate however, many of the new projects are capitalizing on the demand and launch prices are creeping up to or beyond the prices of comparable existing product.  

 

Of course each project must be judged on it’s own merits and there are many highly prestigious offerings which obviously sit in higher price brackets, but it is strongly advised that those considering an investment in a new project receive some expert advice before jumping into their new contract. Call or email the MrLOFT.ca team and we’d be delighted to offer our thoughts and advice on your various options 

 

 

   

FEATURED LOFT BUILDINGS - 2009 SALES SUMMARY

     
         

Loft Name

# 2009 Sales

Avg 2009 Sale Price

High 2009 Sale Price

Low 2009 Sale Price

Avg Days On Market

Avg Area SQFT

Avg $ per SQFT

Highest $ per SQFT

Lowest $ per SQFT

Sorauren Lofts

8

$309,168

$415,000

$252,000

34

793

$397

$515

$317

Fashion District Lofts

34

$444,627

$720,000

$273,000

26

832

$540

$644

$419

Brewery Lofts

6

$530,500

$645,000

$420,000

29

1,352

$392

$403

$378

District Lofts

14

$356,492

$470,000

$283,000

22

827

$435

$483

$355

Broadview Lofts

23

$445,700

$740,000

$309,900

39

1,069

$417

$555

$343

Tip Top Lofts

6

$382,575

$498,000

$265,000

32

798

$491

$532

$434

Toy Factory Lofts

43

$424,993

$715,000

$293,000

27

898

$474

$550

$398

Robert Watson Lofts

18

$368,074

$575,000

$245,000

25

804

$466

$559

$394

Merchandise Lofts

45

$387,835

$795,000

$225,000

26

1,012

$400

$555

$287

Candy Factory

9

$585,480

$800,000

$417,000

18

1,143

$513

$569

$417

Chocolate Lofts

8

$382,238

$529,900

$295,000

24

801

$480

$543

$424

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