It is hard to believe that we are rounding the corner from 2013 to 2014. Doesn’t time go quickly? It certainly seems to at Baker Real Estate, with new condominium sales continuing to keep us busy for a variety of clients. The year 2013 will go down in our history as a moderate year for sales – but for us, that means that the underlying conditions are balanced. This is good news!
It is important to realize that in 2013, the new condominium market in the GTA was coming off of two spectacular, record-breaking years: 2011, when 28,000 condos were sold, and 2012, when sales totaled 18,000. For 2013, we will most likely tally in at 13,000 new condominium sales, which is pretty spectacular in itself, and much more sustainable in the long run. A balanced market is a healthy one, so this leveling out is a good thing on many fronts.
For one thing, potential purchasers have needed a breather from the buying spree that has gone on the past few years. Prices were rising, and with sales leveling out more in 2013, developers have had to compete for attention with attractive pricing and incentives. This always bodes well for consumers, and many fantastic deals were snapped up by the buying public over the past year.
As for 2014, I believe we will outpace 2013, but in a way that continues a healthy balance. I also foresee a continuation of condominium buyers coming from a range of ages and backgrounds, with strong participation from Asian and South Asian populations.
Whether investors or end-users, everyone is well educated today because of the sophistication of the Internet. Potential buyers know a lot about product before they even enter the sales offices. They usually still come in to sign the Agreement of Purchase and Sale in person, but they are better prepared than ever before. As technology advances, I expect to see even more depth of knowledge and understanding among purchasers in 2014, and that is a beautiful thing!