Toronto Condos Spring 2008 Prediction – Part 4

Toronto Condos Toronto Lofts

Toronto Condos Spring 2008 Prediction
Part 4

Read this post at own risk, the content posted here is intended for entertainment only, and not for providing information for transacting purposes. Investors, Buyers and Sellers should all consult a real-estate professional in person and discuss their wishes fully and thoroughly with him or her. Call Yossi at 416.441.2888 x 678 for a free one-on-one consultation.

Fourth Part AKA “The Market is Holding”:

2008 is going to be remembered as a medium-paced and steady season. In an uncertain economic future – at least the media wants you to think this way – and with supplies tightly controlled by builders, that is, slow release of new developments, observe two behaviours on behalf of downtown builders:

(1) Builders discounts: as discussed in Part 3, builders prefer to keep prices at current levels – price reduction are not required at this point in Canada and by default will be disastrous to their reputation and current value.

Instead, we see builders offering specials, discounts, or free upgrades, with many projects. However, this applies only to buildings which are well over 70% sold, most cases buildings with several units remaining and builders simply clearing out stock.

(2) The move to contain inventory supply by selling-out of existing projects: minimizing inventory is a smart step in controlling a market, especially if it is at 90% sold-out: that’s crucial to a builder that wants the sales centre closed, costs reduced and focusing on completion of the project while moving the sales and marketing team to the next project, yet by offering less buildings at a time, supply and demand keep a balance and market naturally stabilizes as we see it performing now.

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— related articles —

Seven Stages of Investing >

Toronto Condos Spring 2008 Prediction – Part 1

Toronto Condos Spring 2008 Prediction – Part 2

Toronto Condos Spring 2008 Prediction – Part 3

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Yossi

Yossi Kaplan is a Toronto Real Estate Agent, Mortgage Agent and a Real Estate investor. Call Yossi with any question regarding investing in and selling your Toronto Real Estate.

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