While I don’t have a crystal ball, here are 5 things that I am predicting for the condo market in 2013.
1. Some Great Deals.
I believe that developers who launch new projects will offer some really great prices to Platinum buyers (the first group to buy), in order to sell quickly and hit their 60-70% sold mark before raising their prices. We saw this pattern last month at Carnaby Row in Queen West. The developer launched at below-market value, sold over a hundred units in just a couple weeks, then raised the prices by tens of thousands on all units. In 2011 and early 2012, developers didn’t’ need to have this price structure. The started with high pricing and kept it high because so many people were buying. Now they will have to be much more aggressive on launch to ensure they get people lining up to buy once again so they can hit their sales targets quickly.
2. Fewer NEW Launches.
Let’s face it, the market in 2013 will be a little slower. There will not be a new 40-storey tower launching every single week as we saw in 2011 and early 2012. Those that do launch will have less competition and will still sell well if they are priced competitively. There are plenty of buyers out there just waiting for the right opportunity.
3. Plenty of Re-Launches Of 2012 Projects.
There are about 21,000 new condos in Toronto that are available for sale. Many of these are in projects that are already 70%+ sold out, so don’t expect any hot deals in these projects, but for projects that are 30-40% sold out, I’m anticipating we will see some excellent deals come up as developers want to push past the 50-60-70% mark to get their construction underway. Don’t worry, I will help you separate the projects that offer real value from those projects that are just repackaging last year’s product at last year’s prices.
4. More Unadvertised Sales.
Developers who do re-launch projects at lower prices will have to do so discreetly so as to not anger previous buyers and not give them impression that they are desperate. This is usually when the developers call people like me to sell directly to my investors at special invitation-only events that will not be advertised to the public. Make sure you know about these events by becoming a truecondos.com subscriber (it’s free). Sign up at the bottom of this blog post.
5. No Crash
There will be no real estate crash in this city this year. It’s just not going to happen. Some areas will increase slightly in value, some will decrease slightly in value, but if you are buying for investment you need to know that there are opportunities in every market. You just need to know how to spot them! Let me help you. Become a subscriber today.