Page 8 - BEST MAGAZINE FALL 2018

COUNTRY COTTAGES
AND CONDOMINIUMS BOOMING
ECONOMÍA Y FINANZAS
Over the past months the real estate market has felt the impact of governmental measures put in place to freeze prices and calm the
craze of the last trimester of 2016 and the first trimester of 2017, where price wars and multi-offers were an everyday thing in the two primary urban centres of Canada; Vancouver and Toronto.
Given these measures aren’t convincing to experts and that many of these experts are unimpressed with the government interfering in the market, it is necessary that the consequences of this interference be as expected. With price adjustments since January 2018 the prices of houses have once more began to gain value at real rhythm.
While high value homes are the ones that have shown the greatest level of price adjustment having a more balanced market, the prices of condominiums have shown interesting increments in price caused by a curious demand. This has been motivated primarily by the following three factors:
• High prices from the “Low rise property” segment directs buyer demand to apartments, which have more accessible prices
• Demand from “baby boomer” investors (those born following the war)
• Demand from “millennials”; young professionals entering the labour market and taking their first steps in the real estate market
BY FRANCISCO GARZÓN
According to the latest report from Royal LePage the sales of houses in the suburbs has adjusted and now presents a more balanced market. The market segment of country cottages and condominium apartments is rapidly growing around the Greater Toronto Area, presenting interesting value growth due to high demand.
The latest poll of prices published by Royal LePage in June 2018 predicts that the prices of “country cottages”- second homes, in Canada- will increase by more than 5.8% yearly thanks to a push by Generation X (36 to 51 years) and Baby- Boomers (51+ years).
In Toronto and Alberta, the aforementioned study shows increments greater than 10.4% and 8.9% respectively.
"Driven by the strength of the nation's economy, Canada's recreational real estate market is set to experience another strong year,” Phil Soper, Royal LePage President and CEO, said in a release. "While home values and sales activity in Canada's largest urban markets have softened, demand
for recreational properties remains robust in most regions.”
If you are interested in broadening your knowledge of the market, its tendencies, or learning about opportunities for investment in Canada or in Florida; contact Francisco@fgteam.ca
8 THE BEST MAGAZINE FALL 2018
ECONOMY AND FINANCE
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