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View and Lawrence), Same Thing NT-Apr 2016-OFC_NT-Sept 2011-OFC 2016-03-17 4:45 PM Page 1 BON APPETIT BAY & BLOOR DOWNWARD DOGFIGHT: GANJA VS. NAKED YOGA DELI KING GOES MEATLESS JEANNE BEKER TRIES ON THIS SPRING’S CUTEST TREND JOANNE KATES ON YORKVILLE’S NEW FRENCH HOT SPOT YO-GOTTA BE KIDDING ME ZANE CAPLANSKY ON T.O.'S TOP 10 VEGGIE BURGERS STRIPES ARE THE NEW STARS APRIL 2016 th 9ANNUAL ROUNDTABLE HILARY FARR SCOTT MCGILLIVRAY PAUL MIKLAS SHERRY COOPER BRAD LAMB ELISE KALLES DAN BARNABIC KAREN STINTZ BARRY COHEN MAT ROSENBLATT Rosedale’s $8.4 million understated masterpiece (story pg. 31) WITH DRAMATIC YEAR-OVER-YEAR INCREASES YOU MAY THINK HOUSING IS FULLY PRICED, BUT ACCORDING TO MANY OF THIS YEAR’S ROUNDTABLE PARTICIPANTS, T.O.’S RED-HOT REAL ESTATE MARKET STILL HAS ROOM TO RUN PAUL SCOTT HILARY MIKLAS MCGILLIVRAY DR. SHERRY FARR ELISE COOPER KALLES BRAD LAMB DAN BARNABIC MATHEW BARRY KAREN ROSENBLATT COHEN STINTZ UNREAL ESTATE! WITH DRAMATIC YEAR-OVER-YEAR INCREASES YOU MAY THINK HOUSING IS FULLY PRICED, BUT ACCORDING TO MANY OF THIS YEAR’S ROUNDTABLE PARTICIPANTS, T.O.’S RED-HOT REAL ESTATE MARKET STILL HAS ROOM TO RUN TH Post City: I’m going to direct the first one and then the other offer came in. I sent in every city. There’s not enough single- 9 ANNUAL to Barry and Elise and then to Brad for the them both back and sold for full price. family home property for people to buy, so condo side. What’s the current state of the Which is unusual. the prices are out of reach to the average REAL ESTATE ROUNDTABLE real estate market? We just sold a big one on Valleyanna person, so the future is condos. It’s the one (Bayview and Lawrence), same thing. It was market we can add inventory. What’s good 2016 Roundtable Participants Barry Cohen: Exhausting. It’s sitting and then it sold full price, $12 mil- about it is we see price increases. Six per fascinating. It continues to grow. lion. cent a year is what we’re seeing. We’ll prob- Brad Lamb President & broker at Brad J. Lamb Realty Inc. We have a lot of foreign influ- It’s frightening that the average price for ably see that again this year, but it’s still and founder of Lamb Development Corporation ence, which is a strong con- a single-family home is over a million for providing the only affordable options for tributing factor. Of course low interest rates young people. Canadians. Scott McGillivray are here. Host of HGTV’s Income Property Everything is on the rise. Elise and I Post City: For detached homes, right? Post City: So families are now turning Barry Cohen work in this luxury market. They call luxury more to condos? Canada’s #1 Re/Max agent over $2 million, but it really should be over Elise Kalles: Yes. We had an offer $3 million the way it looks right now. in the office, 15 offers came in. It Brad Lamb: Yes. As I said Paul Miklas President of Valleymede Building and Development Co. started at $1.5, went over $2 mil- maybe nine years ago, when I Elise Kalles: It should. lion. It’s scary; it really is scary. first participated in the Post City Karen Stintz roundtable, what it would take CEO and president of Variety Village, former TTC Chair Barry Cohen: But even the $5 million mar- Post City: Is this an inventory issue? for families to turn to condos was for hous- and former Toronto city councillor ket has doubled in volume. I think some ing to be so out of reach that people just Elise Kalles 108 per cent over the same time last year. Elise Kalles: Yes, especially in that price throw in the towel and say, “OK, I’m going The #1 broker in Toronto for luxury homes Sales continue to escalate. It’s not that we range. to live in a condo.” We just finished a build- don’t see it ending; we just see a strong ing where about 15 per cent of the units are Dan Barnabic Author of The Condo Bible for Canadians steady rise. Post City: And for condos? three bedrooms, and it’s actually being lived in by families. Dr. Sherry Cooper Elise Kalles: It certainly is, and the foreign Brad Lamb: Well, it’s been predicted by sci- Chief economist of Dominion Lending Centres | APRIL 2016 investors are, I think, especially in the mar- ence fiction writers that the future of hu- Post City: With the economy limping Mathew Rosenblatt ket over $5 million. We don’t get multiple manity is living in apartments. What’s along, why does the Toronto real estate POST Co-owner of the Distillery District with Dundee Realty offers very often but we just did on a condo forcing the issue is the scarcity of land. market seem to be flying so high? | — $6 million. They weren’t just telling you about the , host of W Network’s Love It or List It 30 Hilary Farr It had been sitting, and an offer came in, problem we have in Toronto. It’s a problem 2016 REAL ESTATE ROUNDTABLE COVER STORY Sherry Cooper: There has been why we don’t have what happened in the tries. Because they can’t borrow money to Post City: There’s this common belief that an improvement in employment United States, nothing even close to it, is pay their bills. So if you think interest rates foreign investors are putting a lot of in the GTA and the same thing because of that. It’s one of the main reasons. are going to rise any time soon — I’ve been money into the real estate market, and for Vancouver. It’s certainly a lot Our banking system is not remotely like saying this for about seven or eight years — jacking up prices to unrealistic levels. more positive than Alberta and those parts the U.S. banking system. interest rates aren’t going up any time soon. Brad and Barry, what have you seen that of the country that have been damaged by It’s impossible for it to happen. It’s not supports this? the oil crisis. Having said that though, Scott McGillivray: I’m not going to happen. clearly there’s something else going on here. saying it’s the same thing, but Brad Lamb: I cut out this ad in a magazine It’s not just Canadians that are buying. I’m saying there are some simi- Sherry Cooper: You can’t compare the a couple of days ago that was New York A lot of people are stretching to the limit larities in the financing, you Canadian and U.S. markets. The primary based. All the ads were two, three, four to get into the housing market, even if it know, scenarios that we see people getting difference is that mortgage interest and thousand dollars a square foot for a condo- means buying something that is very small themselves into. property taxes are tax deductible in the minium in Manhattan. Then they had or even further out of the city centre. Inter- United States. Americans, therefore, very something way up in the Upper West Side, est rates are so low, and I think interest Brad Lamb: What’s really protecting our rarely pay off their mortgage. Canadians, on affordable living. It was from the 900s for a rates will remain low throughout 2016. interest rates? Why do we have such low the other hand, most Canadians pay off one bedroom. From the 900s, affordable interest rates? One of the reasons is that their mortgage totally by the time they are living in the northern part of Manhattan. Dan Barnabic: Sherry, why don’t we have a every developed country in the world is tee- in their fifties, and 25 per cent of Canadian It’s laughable to me that we think in long-term 25- to 30-year mortgage at a set tering on financial collapse, and interest homeowners have no mortgage at all. Toronto that our real estate, our houses are rate? Why is it that our banks are insisting rates have to stay low to govern most coun- expensive because there are not enough of on the five-year term? them. But our condominium market is amongst the cheapest in the civilized world. Mathew Rosenblatt: Essentially creating If you go to Copenhagen, London — I’ve an interest rate risk for consumers every CARRIAGE TRADE been to all those places and seen the mar- five years. kets — we are the cheapest. THREE T.O. TROPHY HOMES HIT THE MARKET Sherry Cooper: People don’t want fixed Sherry Cooper: And the Canadian dollar rate mortgages. Most mortgages histori- is very cheap. cally have been flexible rates, and people want that ability to take the risk. Brad Lamb: There’s no doubt that main- land Chinese are exporting capital in not a Dan Barnabic: Are you sure? Because, let’s lawful manner to buy real estate around the just talk about Americans. I’m somewhat world. And some of that capital finds its familiar with what American markets do way to Toronto, and it used to find its way having had properties in Miami and New to New York. It used to find its way to York. I’d say that 50 per cent of Americans Hong Kong. It used to find its way to actually lock themselves in long-term. London. We should be happy: this is a good thing.
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