If real estate signs are any indication, Toronto and Vancouver continue to be two of Canada’s hottest real estate markets. According to recent reports from the Teranet-National Bank House Price Index, home prices have risen steadily over the past few months, with the biggest 12-month rises ever for Toronto and Hamilton. According to a recent Financial Post, Vancouver went up for the first time in five months by 0.7 percent! Both provinces introduced “foreign buyer tax” regulation in an effort to control rising prices, but it appears nothing can stop a hot market these days.
So, where is the next hot market? What can you do to discover the next great untapped area for real estate? Are there real estate signs you can look for?
Maybe you recently drove by the construction of a mini-mall in the middle of nowhere. That’s a sign of pending development. Or did you recently read about a new school being built? Chances are it’s being built in a growing neighbourhood. For years, the Mount Pleasant GO train station between Toronto and Guelph seemed like an odd place to build a commuter train stop – it was the only structure for miles in the middle of a field. Today it has to be one of the busiest commuter stops on the Kitchener line with residential properties surrounding it as far as the eye can see.
New up-and-coming areas don’t necessarily have to be new developments. Some of the best real estate markets are dirt-cheap compared to Toronto and Vancouver, but that certainly doesn’t mean they’re going up in value.
So, how can you tell if an existing area is destined for growth? Here are some common real estate signs that point towards a future hot market in established communities:
- They are usually second- or third-tier cities in terms of population.
- There are cultural and postsecondary institutions nearby.
- The area has a long history and diverse economy.
- The prices are low, but the demand is starting to grow.
Another way to find a new hot market is to look outside of existing hot markets. In places like Toronto and Vancouver, as home prices steadily rise, more buyers will continue to choose the suburbs for affordable housing. People like to live close to urban hot spots with handy amenities and lively neighbourhoods, but there is often not enough affordable property for most homebuyers. As a result, many people have to look further out from cities to find homes in the right price range.
Here are 5 neighbourhoods on the rise in Toronto this year according to BlogTo.
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