Downtown Condo Prices Hit the Ceiling - Spring 2005

The market is defining the downtown residential condo price ceiling at around $850,000.  Condos priced higher than $850,000 remain on the market for longer than the sellers would like because supply outweighs the immediate demand.  Assuming the $850,000 market ceiling to mean that multimillion dollar condos don’t sell would be incorrect.  In the right locations multimillion dollar condos do sell.  It simply means that there are fewer buyers for the top priced units.   A quick look at the profile of the typical downtown condo buyer and we see the reasons for the price ceiling.  Approximately 70% of the buyers are purchasing condos as 2nd, 3rd and 4th homes, they are adult households and the units being purchased are less than 1,800 sq. ft..  Over the years the profile of the buyer has not changed much, but now there are more buyers with more money.