Toronto Real Estate Blog

Sustained Job Growth

Steady job creation and rising incomes in 2008 and 2009 will keep households confident in their ability to purchase and pay for a home over the long term in the GTA. Employment will continue to grow in 2008 and 2009, but at a more moderate pace than experienced last year.

The average number of jobs is forecast to grow by 1.6% in 2008 and 1.5% in 2009. Employment growth will be supported by domestic demand fueling a well-established services sector. The manufacturing sector will continue to be challenged due to a decline in exports south of the boarder resulting from the high value of the Canadian dollar and a broader slow down in the United States economy. However, job growth in service-oriented industries will more than offset the job losses from the goods-producing sector.

There is often concern associated with the shift from goods producing jobs to service sector jobs. While it is true that in Ontario as a whole service sector jobs are associated with lower average incomes, the situation in the GTA is somewhat different.

The local economy in the GTA is the most diverse in Canada. This diversity can be attributed, in part, to the existence of high valueadded service sector employment, including finance, insurance and real estate, professional services, government, healthcare and education.

Many of these sectors will continue to create high-paying jobs through the end of 2009. The higher earnings in these industries will continue to promote the purchase of more expensive home types in submarkets with above-average prices.

The unemployment rate in Toronto is forecast to rise moderately to 6.9% in 2008 and 7.2% in 2009 – below the average unemployment rate experienced over the past two decades. Tight labour market conditions will result in average earnings rising in line with the rate of inflation over the next two years.

Population Growing Through Migration

An increasing number of households will migrate into the GTA over the next two years – up to 65,800 and 68,000 in 2008 and 2009 respectively. Of paramount importance will be immigrant households. Between 2001 and 2006 40% of total new-comers to Canada settled in the Toronto area.

This trend will continue, as people from other countries are attracted not only by quality job opportunities, but also the established ethnic and cultural networks in many parts of the region. In 2008 and 2009 immigration will offset losses of households to other parts of Ontario and the rest of Canada.

The strong regional economies in western Canada will continue to be a drag on population growth in central Canada, including the GTA. However, this movement westward will be more moderate as the economic gap between Ontario and western Canada narrows gradually over the next two years.

Mortgage Rates Will Remain Relatively Flat

Posted mortgage rates eased by about 50 basis points in the first four months of this year, although rates in late April were 30 to 35 basis points higher than they were 12 months prior. Mortgage rates are expected to trend marginally lower throughout 2008, but will be within 25-50 basis points of their current levels.

For 2009, posted mortgage rates will begin to drift up slightly as the year progresses. For 2008 and 2009, the one-year posted mortgage rate is forecast to be in the 6.50-7.50% range, while three and five-year posted mortgage rates are forecast to be in the 6.75-7.50% range.

————————————————————————————————————

Contact the Jeffrey Team for more information – 416-388-1960

In the wake of a slew of successful east-end developments, Lamb Development Corporation has added yet another hot property to its list – Flatiron Lofts, the second phase to Worklofts, which is expected to garner just as much attention.

Broker Preview Event – Thursday May 29th @ 5pm sharp! Contact us today and we will get you in!

Rising at the corner of Dundas and Carlaw, the project’s location is undeniably hot, attracting buyers with an affinity for Toronto’s east end district – The Beach, Riverdale, Leslieville – both for its pace, and its price, says Brad Lamb, President and CEO of Lamb Development Corporation, the developer behind the Flatiron Lofts project. “A lot of people are starting to notice Carlaw Street as a very vibrant corridor that’s a lot less expensive than downtown.”

Take it from Lamb – this broker-turned-developer knows what sells, and why. “We’ve done marketing for Printing Factory Lofts, Garment Factory Lofts, and three townhouse projects a stone’s throw from this Carlaw-Dundas-Queen area, and they were all very successful. This is just the next generation of properties here to finish this street up.”

To put the finishing touches on this trendy neighbourhood, Lamb enlisted the help of Charles Gane of Core Architects to make the most of the property’s irregular shape, its location, and its endless possibilities for exterior and interior details. The result, says Lamb, is a “beautiful building shaped like a wedge, driving the intersection, and creating an entrance to the neighbourhood.”

In fact, Flatiron Lofts takes its name from the building’s shape, which is something of a rarity. “There are very few buildings around the world that have this flatiron shape, and we thought it would be a very cool thing for that corner,” says Lamb.

Like Worklofts, Flatiron Lofts will offer both residential lofts and commercial lofts, notes Shakeel Walji of The Walsh Group, the ad agency for the new development. “Brad has made a conscious effort to keep the business area active on Carlaw Street.”

In light of that, Flatiron Lofts is a glass-and brick structure rising 10 floors. The first floor is devoted to retail and the second floor are commercial studio lofts. The third to tenth floors house 85 residential lofts. Starting from 455 sq. ft., layouts include one-bedroom, one-bedroom-plus-den, two-bedroom and two-bedroom-plus-den layouts. Topping off the project, a 1,400-sq.-ft. sub-penthouse and a 2,200-sq.-ft. penthouse offer permanently unobstructed and awe-inspiring panoramic views of the city skyline.

This unique flatiron shape of the building allows for what Lamb calls “wide shallow lofts.” As opposed to typical 15 ft. wide and 45 ft. deep layouts, which often result in dark spaces, Flatiron Lofts offers units that are 20 ft. deep and 25 or 30 ft. wide, maximizing on windows and natural light, creating a bright and open feeling.

Whether you’re looking at a penthouse or one of the smaller suites, Lamb has outfitted each unit with nine-ft. ceilings, floor-to-ceiling windows, and finishes that would be considered upgrades by any other standard.

Kitchen feature double-thick stone counters, high-gloss European cabinetry, and gas cooking with quality stainless steel GE appliances. Bathrooms boast what Lamb calls “designer magazine-style” vanities and fixtures. “They’re just beautiful.” Floors are finished in 12-by-24-inch tile. Fifty per cent of the suites offer balconies, terraces and patios, which are outfitted with natural gas for year-round barbecuing.

Commercial studios at Flatiron Lofts start at a price of $179,000, while residential lofts start from $199,900. With the plans starting to take shape, and move-in dates slated for 2010, buyers wanting to make this coveted east-end neighbourhood home should hurry.

————————————————————————————————————

Contact the Jeffrey Team for more information – 416-388-1960

Now is the time to register for your preview appointment for Plazacorp’s newest condominium community, King West Condominiums in Liberty Village

The Sales Centre is nearing completion now and only registered buyers will be invited to a preview appointment. Contact us today and let us know if you want to be first in line to preview the latest condo project in King West.

As more information becomes available, we’ll be able to send you previews of literally dozens of spacious floorplans, including their unique soho-style 2 bedroom/2 bathroom suites from under $294,900 – as well as breathtakingly sunlit corner plans, rare 1 bedroom + den/2 bathroom plans, and plans with giant terraces up to 1,100 square feet – and more!

Learn about the luxurious standard suite features; building amenities such as the 25th floor Lakeview Club, the pool and arcade, the landscaped courtyards and breathtaking lake and city views; learn about the King West Life; and  learn more about this unprecedented opportunity to own a spacious truly livable new home filled with luxurious standard finishes in the King West/Liberty Village Community.

————————————————————————————————————

Contact the Jeffrey Team for more information – 416-388-1960

Property owners to get a fairer assessment appeal system

A fairer property tax appeal system is expected with changes announced by the provincial government. The changes mean the onus of proof on property assessment appeals is reversed so that, when a property owner appeals an assessment, the Municipal Property Assessment Corporation (MPAC) would be required to prove the accuracy of the new assessment.

The government move follows the Ombudsman’s recommendation that this measure would enhance the fairness of the appeal process. The legislation would place the onus on MPAC to prove the accuracy of property assessments that are appealed to the Assessment Review Board (ARB).

The government also intends to introduce legislation to implement changes to the assessment appeal system announced in the 2007 Budget — changes designed to create a more streamlined and transparent appeal system. A key proposed change would make the Request for Reconsideration (RFR) program the first stage of the appeal process for property owners. The RFR, which is free of charge, encourages the sharing of information between MPAC and the property owner, and provides taxpayers with the opportunity to resolve their concerns directly with MPAC in an informal setting.

The Ministry of Finance is also working with MPAC and the ARB to disclose valuation information to taxpayers about their property assessment in a timely way. This will help property owners review the accuracy of their assessment, decide whether to engage in the RFR process, and prepare for their hearing if they decide to appeal to the ARB.

These measures are proposed to take effect for the 2009 taxation year. Details about the proposed new appeal procedures and deadlines will be communicated to property owners in the coming months, prior to the 2009 implementation date.

————————————————————————————————————

Contact the Jeffrey Team for more information – 416-388-1960

Pub-laden area reminds many of U.K.’s capital city

Only a few great suites remain! Take advantage of a broker’s open house this weekend only – make an appointment with us to go to the sales centre. Prices still start as low as the $180s up to the $550s with layouts from one-bedroom up to two-bedrooms-plus-den. With occupancy scheduled for this October, the building is almost complete!

People looking for a new London home better move fast – London on the Esplanade is almost sold out.

“I’ve done this for over 20 years,” says Phyllis Shapiro, the project’s sales manager. “I always tell people to buy location. There is so much around here that you literally don’t need your car.”

The two buildings and podium will sit right behind the Hummingbird Centre, south of Front Street and east of Yonge.

“A lot of people have commented over the years the area reminded them, especially with all the pubs, of London,” Shapiro says. “People who live in this area, or who wanted to live in this area didn’t have a lot of options before.”

Shapiro is moving in herself, something she has never done with any project she’s worked on in the past two decades. She says the first incentive was the location, but second was the layout.

“The architect did a very good job with his floorplan. He’s really utilized his space well,” she says.

Burka Varacalli Architects, who were involved with projects such as the Bayview Mansions, the St. James Cathedral and 801 Bay St., have designed 12 different “London flat” suites and nine different lofts.

Floor-to-ceiling windows, pre-finished engineered wood floors and mirrored sliding doors in all bedroom closets are among some of the suite features.

“Club London” will have spa rooms, a fitness centre, a London-styled pub and cinema among other amenities.

As for the external look of the building, Shapiro says, “The large tower will suit the financial district and incorporate a brick inlay to keep with the area. People really like that feel.”

Shapiro says another sales representative has bought on this project as well.

“I live up north so this will be a big change for me but I really like this block,” she says. “Other people are moving from the north. They want to get back into the night life — their kids have grown up.”

————————————————————————————————————

Contact the Jeffrey Team for more information – 416-388-1960