According to local CENTURY 21 Broker Gary Zalepa Jr. the key message for home owners derived from a recent CENTURY 21 Canada study is that an accurate evaluation of your home can only be achieved by comparing your home with similar type homes that have sold recently. Do not rely on market average figures. Real estate is highly localized and many areas in Canada have very active and healthy markets.
"Niagara on the Lake is one of those special markets" says Zalepa. Evidenced by it's balanced inventory level. The current number of resale homes available today, 277 is almost identical to the same number last year. The market has experienced a decline in the number of sales but this has been balanced out by a reduction in the number of new listings that have been brought to market. The local market has not experienced an increase in supply that could negatively impact values. The economic situation in general has created some downward pressure on local housing values but the degree of impact is very specific to each transaction.
For instance, for local home owners who purchased in the last 12 months there is market evidence that suggests it will be challenging to acquire the price you paid. These home owners, if faced with having to sell are most likely going to have to discount from what they paid.
The home above was purchased in 2008 and was subsequently sold in May 2009. The sale price was 10% less then the price paid in 2008.
But if you have owned your Niagara on the Lake home for more then 5 years then there is market evidence that supports the fact that your investment has performed strongly. That strength increases relatively with your homes identifiable uniqueness. For example waterfront, desirable locations, ravine settings, privacy, proximity to amenities and natural heritage features. In reviewing recent sales of homes that sold this year and also sold previously within 6-7 years ago, those homes averaged an increase in value of 13.5% per year for those years of ownership.
Niagara on the Lake is amoungst good company when comparing it across Canada. Our housing market is performing well when comparing to desirable locations across this country. Key neighbourhoods in Toronto, Vancouver and Ottawa are out pacing our values from 2008-2009 but in the long term Niagara on the Lake house values are competing very well and keeping pace nationally. Strong sales in these key markets across Canada bode well for the future activity in our local market. As many of the home sellers coming out of these high performance centres consider Niagara on the Lake as their destination.
Here is the National Study...
IN THE HOTTEST 21 NEIGHBOURHOODS ACROSS CANADA
- Prices up by 17% in past year in hottest market
- HOTTEST 21 NEIGHBOURHOODS span five cities, 10 suburbs
- 32 of 190 neighbourhoods had price increases over the past year &month
- 117 of 190 neighbourhoods had price increases over the past month
FOR IMMEDIATE RELEASE: June 11, 2009
VANCOUVER - Housing markets in a handful of neighbourhoods in Canada's major cities have
dodged the recession and experienced robust price increases over the past year, according to
a CENTURY 21 Canada "HOTTEST 21 NEIGHBOURHOODS" survey released today.
CENTURY 21 Canada also reported that more than a hundred other big city neighbourhoods
are experiencing resurgent house prices after months of languishing in the recession doldrums.
CENTURY 21 Canada said Canada's HOTTEST 21 NEIGHBOURHOODS for housing prices are located
in five major cities and 10 suburbs of major cities:
- Over the past year, from April 2008 to April 2009, average prices in these HOTTEST 21
NEIGHBOURHOODS increased by up to 17%.
- Over the past month, from March 2009 to April 2009, average prices in these HOTTEST 21
NEIGHBOURHOODS increased by up to 16%.
The CENTURY 21 Canada survey shows that the HOTTEST 21 NEIGHBOURHOODS were in Toronto
(three); Toronto suburbs (eight); Vancouver (two); Vancouver suburbs (one); Ottawa (one);
Ottawa suburbs (two); Winnipeg (two); Halifax (one); and Regina (one). All of the HOTTEST 21
NEIGHBOURHOODS experienced price increases over the past year and over the past month.
Don Lawby, President of CENTURY 21 Canada, said, "These survey results support what I am
seeing in my annual June Canada-wide tour of housing markets. Although most markets have
been impacted by the recession, some have neighbourhoods in which prices are resilient and
stronger today than a year ago and many have neighbourhoods that are getting stronger
month by month this spring."
"This survey serves as a reminder to Canadian homeowners to avoid relying on city, provincial
or national averages to gauge their local neighbourhood housing markets. Instead, sellers
should monitor selling prices of similar homes in their own neighbourhoods. Buyers should
monitor selling prices of typical homes in the neighbourhoods where they want to live," said
Lawby.
The CENTURY 21 Canada survey covered 10 major cities (Halifax, Ottawa, Toronto, Winnipeg,
Regina, Saskatoon, Calgary, Edmonton, Vancouver and Victoria) by Canada Post Forward
Sorting Areas (FSAs) which are the equivalents of large neighbourhoods. FSAs are the first three
digits of Canada's postal codes. Data was compiled for 190 of these neighbourhoods in which
at least 30 housing units were sold during March 2009. Quebec data was not available for this
survey and is therefore not included.
Of the total qualifying 190 neighbourhoods:
- 32 had average price increases over the past month (March 2009 to April 2009) and over the
past year (April 2008 to April 2009),
- 117 had price increases over the past month (March 2009 to April 2009) but declines over the
past year, and
- Six had price increases over the past year (April 2008 to April 2009) but declines over the past
month.
The complete database showing market activity, days on market, average prices, median
prices, and sold-to-ask ratios is available at www.century21.ca/media.
Hottest of the Hot 21
Price increases over the past month and year
Etobicoke
The hottest neighbourhood in metro Toronto over the past year included the Centennial Park
area in Etobicoke (FSA: M9C) bounded east and west by Highway 427 and Etobicoke Creek
and north and south by Eglinton Ave and Queen Elizabeth Way. In this neighbourhood,
average prices were $302,052 in April 2009, an increase of 17% from $257,907 in April 2008 and
an increase of 4% from $290,365 in March 2009.
Pickering
Another hot neighbourhood in metro Toronto includes Brock in the eastern suburb of Pickering
near Lake Ontario (FSA: L1V) bordered on the north and south by Finch Avenue and Highway
401, where average prices were $334,216 in April 2009, an increase of 16% from $280,340 in
March 2009 and an increase of 7% from $311,372 in April 2008.
Richmond, B.C.
The hottest neighbourhood in the Greater Vancouver/Lower Mainland is in Richmond (FSA:
V6X), bounded north and south by Fraser River and Westminster Highway and east and west by
Number 5 Road and Vancouver International Airport, where average prices were $448,469 in
April 2009, an increase of 16% from $375,396 since March 2009 and an increase of 3% from
$433,605 since April 2008.
Langley, B.C.
Another hot Vancouver neighbourhood is in the Township of Langley, 30 kilometres east up the
Fraser Valley. Including the Langley Meadows neighbourhood (FSA: V2Y) this area is located
directly south of the Trans-Canada Highway, north of 62nd and 56th Avenues, west of 248th Street
and east of 196th Street, where average prices were $490,354 in April 2009, an increase of 15%
from $414,560 since March 2009 and an increase of 12% from $437,041 since April 2008.
Winnipeg
North Kildonan in Winnipeg is a hottest neighbourhood (FSA: R2G), in an area bounded on the
north, south and east by Glenway and Knowles Avenues, Oakland and McLeod Avenues and
Day Street respectively. In this neighbourhood average prices were $225,111 in April 2009, an
increase of 15% from $190,573 in March 2009 and an increase of 2% from $220,416 since April
2008.
Vancouver
The hottest neighbourhood in Vancouver is the downtown West Side/Coal Harbour area
(FSA:V6E) bordering English Bay on the south, Hastings Street on the north, Burrard Street on the
east and Broughton Street on the west. In this neighbourhood, average prices were $561,198 in
April 2009, an increase of 15% from $476,331 in March 2009 and an increase of 0.3% from
$559,314 in April 2008.
Ottawa
The hottest neighbourhood in Ottawa is the central area of Greenboro (FSA: K1T) bounded by
Conroy Road and the CNR/CPR right of way. In this neighbourhood, average prices were
$277,434 in April 2009, an increase of 15% from $235,956 in March 2009 and an increase of 3%
from $268,028 in April 2008.
Toronto
The hottest neighbourhood in the City of Toronto includes High Park (FSA: M6P) bounded north
and east by the CPR and CN tracks and on the south and west by Bloor Street and Runnymede
Road, where average prices were $505,063 in April 2009, an increase of 14% from $436,369 since
March 2009 and an increase of 7% from $473,392 since April 2008.
Oshawa
In the Toronto suburbs, one of the hottest neighbourhoods is Central Oshawa (FSA: L1J)
bordered on the south and east by Lake Ontario and Oshawa Creek, on the north by Conlin
Road and on the west by the Oshawa-Whitby town line. In this neighbourhood, average prices
were $230,320 in April 2009, an increase of 13% from $177,912 in March 2009 and an increase of
4% from $196,357 in April 2008.
Halifax
The hottest neighbourhood in Halifax borders on the northeast shores of Halifax Harbour and
Morris Lake (FSA B2W) where average prices were $222,756 in April 2009, an increase of 11%
from $197,491 since March 2009 and an increase of 11% from $200,041 since April 2008.
An additional 17 neighbourhoods had increases of 10% to 27% over the past month from March
2009 to April 2009, but experienced declines over the past year from April 2008 to April 2009.
Toronto, Vancouver and Calgary each have two of these neighbourhoods, while the others are
Richmond Hill, Brampton, North York, Etobicoke, Winnipeg, Regina, Saskatoon, Edmonton,
Abbotsford, Port Moody, and Burnaby.
Data in this survey was compiled from MLS data for CENTURY 21 Canada by an independent
research firm that provides real estate statistics for professional realtors throughout North
America.
About Century 21 Canada Limited Partnership: Century 21 Canada Limited Partnership
(century21.ca) is a real estate franchisor with exclusive rights to the CENTURY 21 Brand in
Canada and is part of the world's largest residential real estate sales organization. CENTURY 21
Canada provides comprehensive training, management, administrative and marketing support
for the CENTURY 21 System, which is comprised of approximately 8,000 independently owned
and operated franchised broker offices in 68 countries and territories worldwide.