Wednesday, September 03, 2008

RE/MAX Reports Solid condominium performance bolstered by affordability in the first half of 2008

Solid condominium performance bolstered by affordability in the first half of 2008, says RE/MAX

Mississauga, ON (September 3, 2008) - Showing remarkable resilience in a complex real estate environment, sales of condominium apartments, town homes, and lofts moved ahead of 2007 levels in 30 per cent of districts examined in the GTA this year, according to RE/MAX Ontario-Atlantic Canada.

Condominiums proved to be as solid an investment as single-detached homes in 2008, with property values of both rising virtually across the board in the first half of the year. The average price of a condominium appreciated in close to 87 per cent (52/60) of Toronto Real Estate Board districts examined by RE/MAX -- with 20 per cent (12/60) reporting double-digit increases from January to June 2008, compared to one year ago. Willowdale, Lansing (C07) topped the list of best performers, with a 14.66 per cent increase in values, rising from $258,884 to $296,854. Thornhill (N02) placed second with a 13.3 per cent increase, bringing average price to $290,709.

Both Willowdale and Thornhill saw nominal increases in sales activity as well, rising 2.8 and 3.5 per cent respectively. The downtown core (C01), including King West, secured third spot with an 11.35 per cent increase in average price, bringing values in the area to $355,201 from $318,974 one year ago. Lawrence Park (C10) saw an 11.3 per cent increase in values, rising from $350,916 to $390,589, and a 5.7 per cent increase in unit sales, rising from 174 in first half of 2007 to 184 in 2008. Cabbagetown (C08) placed fifth with a 10.82 per cent increase in average price, rising from $301,224 to $333,818.

"Condominiums experienced upward momentum during the first six months of the year, despite an overall lag in the marketplace," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "Their entry-level price point --between $200,000 and $300,000 for a small, one-bedroom unit downtown - clearly struck a cord with a broad range of purchasers. And while singles, empty nesters, and retirees, remain driving forces in the condominium market, a new demographic has emerged - young families. This active segment of the market is fuelling demand for town home developments throughout the central core."

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829

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