This blog is going to be directed towards the condo market and my recent frustration within the industry…

Think of it like this… When you go to buy a pair of shoes at Foot Locker… There are many different brands and types of shoes on the wall… You can buy cheap Converse shoes for $45.00 or you can buy $300.00 Jordans. Just because the Converse are on the same wall as the Jordan’s, it does not mean that the Converse are worth $300.00.

Now…

Let’s revert to the Toronto Condo market so I can relate this theory…

For example… Many buildings in the Downtown Core are selling for $1,000 per square foot. These are quality buildings in a good location and are to be looked at as the Mid-High market. You still have your Ritz Carlton units selling for $1,500+ per sq/ft.. But I’m talking about the Theatre Parks, the King Charlottes, the Market Wharf Condos… These are all trading at $1,000 per sq/ft and rightfully so, as they are high quality and in great locations.

But… When you have a building which is not high quality… or has high maintenance fees… or is littered with investors and rental units… This is NOT worth $1,000 per sq/ft simply because it is in the same vicinity as the buildings I mentioned above.

This is simply an agent creating a false dream by saying “the building beside you sold for $1,000 per sq/ft… you can to!”

Then they literally multiply the square footage by 1000…. i.e. if the unit is 679 sq/ft… they list the property for $679,000…. (shakes head)

Then the property sits…

and sits…

Thus… there IS inventory on the market as we are now in the Spring Market… but so much of it is this over-priced nonsense. Don’t get me wrong, if the property was priced appropriately (for the product) with seller’s expectations not inflated… it WOULD sell!

But for now… we stay in this funny area where Converse are Jordans, and all Condo’s are made equal..