There are some people who love statistics, and so, in case you are one of them, here are a few real estate tidbits I jotted down from a recent meeting with “Condo Guru” Barry Lyon:
· Single dwelling family land is getting scarce. The new “single” dwelling is a townhouse, which has proven to be a great starter home for the first 3 to 5 years of a young family.
· The average difference in price between new sales (pre-construction) and resales is $90,000.
· The average $/sq ft for new sales is $440/sq ft.
· In 2013, by making units smaller, the prices remained flat. In 2011 the average sq ft of a condo was 850 sq ft; today it is 800 sq ft.
· Mortgage companies do not like to finance units with less than 500 sq ft.
· Some units today are as small as 289 sq ft (eg. Smart House Condos).
· Five years ago, there were 100 individual developers. In 2013, there were 213, which is really too many, leaving many unsold pre-construction units.
· There were 172,000 high-rise units completed in the GTA between 2000 and 2013.
· In 2014, there will be incentives from developers to sell the units. Since I am familiar with pre-construction sales, I would be pleased to help you negotiate with the developer.
· As single family housing becomes too expensive, people are pushed into renting and condos.
· Toronto has 303 High-rise Development Applications for 135,000 proposed units. For all of GTA, there are 502 applications for 240,900 units.
· Markham has most applications in the 905 GTA.
· Architects are very busy!
· Condos in Toronto are not turning over as much, as the baby boomers tend to stay put.
· Immigrants want to own property and buy a condo ASAP with the idea to buy a house later.
· Square footage of office space per person is shrinking. A standard size used to be 250 sq ft per employee. Today it is becoming 150 sq ft per person.
· People like downtown lifestyle.
· 60 to 70 percent of condos are rentals.
· The rental vacancy rent in Toronto is still under 2 percent.