Why is Cabbagetown appreciating in value?

Seems that any property that gets listed in Cabbagetown sells and sells quickly.  This begs the question, why is it that properties sell quickly in Cabbagetown?  Following are a couple of items that I’ve noticed in my practice in Cabbagetown and its great impact on real estate values.

• Properties with multiple units are selling faster than single family and with multiple offers. (Read greater interest) We have a great pool of investors that are also working in the neighborhood that keep buying the old slum lord properties and renovating them into great homes for our future neighbors.
• There have been new sold price records set in this year.  We had two properties in Cabbagetown that have sold for over 2 million dollars.  Traditionally, anyone looking in that price range would be buying in Rosedale but we are seeing a trend coming.  We also have two properties now listed over 2 million dollars.
• I’m seeing more attached/row houses listing over 1 million dollar mark than ever before.

There is a huge demand for homes in Cabbagetown and this coupled with low number of properties listed is putting an upward pressure on the price resulting in properties selling with multiple offers and over asking price.  There are properties that are lingering on the market as well which have different reasons for not being able to sell.  In May 2011, we saw almost 60% of our listings sell with an average days on market of 17 days.   This is lower than the regional average of 23 days. The questions to ask is why?  Why is Cabbagetown doing better than our neighbors? I believe Cabbagetown is high in demand for couple of great reasons such as our history and people but there are some new changes which I will try to highlight:

1. Regent Park Redevelopment:  I believe that this project will help Cabbagetown the most by removing the stigma of low-income housing slums close to our homes and allow for gentrification.  I’ve had couple of my clients buy their home in the project and in my opinion, they will see great returns by investing in this development early.  They have the Paintbox building coming soon which will increase the density/population in our area further.
2. Our businesses:  Any local redevelopment helps our local businesses first.  Increase in population means, increase in sales at local businesses.  It’s also no surprise that we’ve seen some great start-ups in our neighborhood over the winter and spring.  Couple of notable mentions are Labor of Love, Stout Irish Pub, Mylk Uncookie, Merry Berry, Winchester Kitchen, House on Parliament and The Flying Beaver Puberet that have made waves in the media and have attracted people into our neighborhood.
3. Our local garden and home tours:  These are a great source to bring outsiders into our neighborhood and bringing the community together to support local functions.  The festivals are a great source of promotion as well which include Forsythia Festival and Cabbagetown Festival.
4. Our local associations such as Cabbagetown BIA, Cabbagetown Preservation Association, Dov Vale Resident’s Association, Cabbagetown South Association, Aberdeen Ave Resident Group are all fine examples of locals passionate about their neighborhood and coming together to make it better.
5. Riverdale Farm and Farmers Market is one of the reasons that our area does well.  A great attraction for residents and future neighbors who want to raise their families close to outdoor area close to downtown.  We also have a large number of residents that use the off-leash dog park for their furry friends.
6. Another great reason to live here is the near to downtown and TTC.  The two factors will help customers and neighbors to use the area with ease.