No matter what the situation, there are always exceptions to the rule. This is as true for real estate as it is for many other things. While most of North America is suffering from a huge decline in the real estate market, there are pockets of real estate prosperity in select parts of Canada. What sets these cities and towns apart from the rest of North America?
If you are looking to buy a home in Paradise, Newfoundland, no sign of an economic recession is evident. Home values are steadily increasing. The town in growing at a rate of 30% and homes that are listed for sale are on the market for practically no time. This suburb of the province’s capital St. John’s has an almost non-existent vacancy rate for rentals. Thanks to major improvements in the province’s economy and the development of the offshore oil industry there, the St. John’s metropolitan area is doing better economically than the vast majority of North America.
Other areas where things are bustling include Laval, Quebec. The Montreal suburb, also the third largest city in the province is a hotbed of real estate activity. A particularly good investment is a condominium near the subway station. While vacancy rates throughout the city that borders Montreal are low, near the subway station, they are even lower and rents are therefore higher. Single family dwellings are also increasing steadily in value despite the economic downturn elsewhere. A steady supply of work and proximity to Montreal have helped the real estate market of Laval.
The Kitchener-Waterloo area of Ontario is another example of an area bucking the trends. There is a tight vacancy rate in the area, thanks in part to having the second highest employment rate in the province and the fact that there are many younger citizens living there. Average weekly earnings have increased in the past year. Homes in the $250,000 and below price range are in high demand. The Kitchener-Waterloo area is located in what is known as the technology triangle of Canada. There are an abundance of high tech firms located in the area, providing jobs and attracting people to the area.
Of course there’s good old Toronto. Toronto has really been bucking the trend, and as of November 2009, real estate prices are actually up over the same period in 2008. It seems as though the demand for real estate in the big smoke is still outpacing the increase in supply. And with the recession finally fading, Toronto’s real estate prices could be set for modest gains over the next few years.
In addition to each of these areas having good reliable sources of employment available for their residents, there is another thing they have in common. They are all in or bordering on college towns. This means there is a steady influx of students ready to rent apartments in the area. This helps the economy also. However, it is truly a combination of factors working together that make these Canadian cities and towns hotbeds of real estate activity when much of the rest of the real estate market is still in a slump.