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This article was supplied to us by Rhys Trenhaile, he can be reached via his website.
Windsorites May Complain About Home Prices, But They Still Have the Most Affordable Housing
There is a lot of complaining going on about the high real estate prices in the Windsor area.
The fact is, despite Windsor seeing massive 50% property increase gains over the last year, it is still shockingly the most affordable major city in Ontario.
It also remains the second most affordable city in Canada behind Halifax, Nova Scotia.
Broker Rhys Wyn Trenhaile of The Vanguard Team at Manor Realty Ltd. says the reasons for this are largely because property values historically gone up 5% a year since confederation in 1867.
“It is such a straight line it is almost amazing,” he adds.
During the global recession in 2008 and 2009, Windsor’s property values dropped by over 25%.
The recovery was not as quick as you might think, as the next six years saw below 5% per year in property growth.
This means coming into this red-hot market, Windsor had a lot of room to grow to get back up to that 5% property gain per year.
Trenhaile says virtually all of Canada has experienced this for the last 150 years, not only Windsor.
“These property gains have now been realized in such a short period of time that it shocks people.”
Provided the market slows down quickly over the next two years it should settle back into that approximate 5% per year property gain.
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The market essentially caught up for a lot or recent property gains over the span of roughly 18 months.
Trenhaile still feels there will be increased property growth of 10 to 15% per year for the next two years before things get back to normal.
“This will likely leave us above that 5% a year, but we all know recessions come and recessions go. At the end of the day things will probably settle right back at 5% a year as they always have.”
For more information speak to a member of The Vanguard Team at Manor Realty Ltd. (519) 250-8800 or visit thevanguardteam.com.
Financing Affordable Housing Purchases
Despite the growth in the market in recent years, Windsor still has some of the most affordable housing in Canada compared to household income. So, if you are interested in investing in Affordable housing in Windsor, click the link below for a free strategy call today.