July 2008 Sales are Out – should you panic?

 Toronto under Construction!

Well well. July sales are out and as you know my main concern is with the “island” of downtown Toronto. Why “island”? because just like in Manhatten, Toronto’s core is bordered by two rivers, The Don and The Humber, to East and West respectively, and to the South by the waterfront and to the North by the 401 Highway.

 The reason i am bothering telling you all that, is that I get daily calls from investors trying to make money in the 905 regions. Now with gas prices through the roof and parking costs that want you think twice about driving, the solution is clear: leave the suburbs (that your parents settled in) and move to the downtown core. Ditch that car and enjoy a lifestyle cheaper by $1000 per month – once you include gas, insurance, service and the unavoidable tickets.

 So how are sales doing in the Central region? well I think they are doing well. People are buying and selling, and with 3,787 listings and 2,407 sales they are what TREB calls “seasonally adjusted”. Jason Mercer, an excellent economist working at CHMC was quoted today saying that large fluctuations in sales are due predeominantely to large developments relased.

 Take for examples PlazaCorp’s King West building: with over 1,100 units in that project alone, and with over 3,000 units under construction, this company alone can shift the results of the market a few points here or there. Lesson learned? read the numbers carefully, and understand the environment in which we operate in.

 Last I’d like to mention Days on Market. Central Region averages 28 DOM. That means that if you properly price your home or condo for sale, you can expect it to sell within 28 days. If you over-price your property, it’ll take longer to sell, and you may not get the best price possible as your listing “stales” and losses momentum.

 And that’s the end of my rant. I want to remind everyone that my broker and myself are signed with Aeroplan Airmiles – that means we buy you Aeroplan Miles (the Air Canada type, not the LCBO ones) – and it’ll cost you nothing cause we actually will pay Aeroplan for it.

 Here is the direct link to the report, feel free to email or call me with any questions.


Contact info:

Yossi Kaplan, MBA
Specializing in Condos, Lofts, Investments and New Developments
Harvey Kalles Real Estate Ltd., Brokerage
tel 1.416.441.2888 x 678
fax 1.866.598.6001


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