COVID-19 has had a big effect on all parts of our life, including shaking up the housing market all across the country. In the wake of this change, Real Estate Expert Monique Johnson shares the hottest real estate locations in Canada.
#1: Coastal Towns
The Greater Vancouver Area, Muskoka, Halifax, Nova Scotia, PEI, and Newfoundland are all booming right now for one reason: price point. These communities are popular for retirees and have been affordable for years, with pricing from $200K and up for sizable detached homes. Such low pricing is unheard of in Montreal, Toronto, Ottawa or Victoria, and many city dwellers are trading their metropolitan life for real estate in these communities. Often, they can use their sales proceeds to invest in a massive down payment to reduce mortgage costs or even do away with a mortgage all together.
These areas often have very low interest rates to add even more enticement to the deal. As a result, sales activity and pricing is up significantly in Atlantic Canada – over 30%+ since 2019!
#2: Retiree Towns
Historically retiree towns are also experiencing growth right now, particularly from families moving in. Green, plentiful pastures offer the bonus of having more land, a bigger house and a scenic atmosphere. Also, with more companies making “work from home” a permanent option, these areas are seeming more feasible. Given that you can sell a home in Ajax and buy a big house in Newfoundland for half the price, this is a no-brainer for some.
#3: British Columbia Suburbs
BC has historically been a very price to live. In 2021 however, there are some affordable suburbs emerging in place like Burnaby and Kelowna. The average detached home price in these places is under $1 million with low interest rates, making this a very appealing opportunity for the curious buyer.
#4: Condos in Toronto
The 416 has seen dramatic change in the last year due to the pandemic causing significant travel reduction, a culture of working from home and locked down businesses. Lots of students have chosen to attend class from their hometown rather than moving, and the entertainment industry is locked down. There are less and less reasons why one can justify staying in the core for their lifestyle, for now at least. These monumental changes have reflected in the market, with listings up 194% and prices down 3%.
The low prices and high amount of listings likely won’t last between the anticipated vaccine, ramping up of skilled worker and student immigration and the low borrowing rates. Furthermore, there will always be people who want to live in cities, and condos are a crucial part of this equation. Toronto will return to a level of vibrancy, and with it will come the condo market bouncing back and holding long-term value.
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