“The average sale price has gone up by 3 per cent (in 2003), which is a good sign and I think that will continue, but it's my feeling the sales activity will slow down," says Brdlik, who compiled the figures for his annual loft market forecast.

He's predicting interest rates will rise later this year, pricing some buyers out of the market.

Plus, there are fewer new loft developments coming on stream, largely because most of these projects attract small- and medium-sized developers who "can be quite nervous" about financial risk, Brdlik explains.

Average loft sales rose by 1 per cent in 2003, says Brdlik, adding sales west of Yonge were 13 per cent higher than east of Yonge.

In 2003, Toronto's cheapest loft sold for $128,000, down from $136,000 the year before. The top-priced unit was just over $1 million, a 15 per cent increase over 2002's $912,000 high, Brdlik reports.