You have probably heard that in real estate, the three most important factors are location, location, location. This is as true for real estate in Kitchener Waterloo ON as it is for Toronto condo rentals. Where the real estate is located will often be the deciding factor in how much a house sells for, who it sells to, and how many offers are put on a piece of real estate when it goes up for sale. In fact, the location may also determine just how quickly a house sells.
At first blush, it might seem as though location was a fairly specific term, without need for elaboration. However, there are a host of different factors that come into play when one is talking about location. A home for sale in Paris Ontario will of course have a lower price tag than a comparable home in Toronto, but it can also be priced significantly higher than a home in another neighbourhood in the same city, simply because of the desirability of the area. Let's take a look at some things to think about as far as location when real estate is under consideration.
As far as individual cities go, the driving force behind the reality of the real estate markets will be the economy. Robust economies, with high paying jobs available to a significant portion of the population, are behind booming real estate markets. A good example of this is Fort McMurray in Alberta. This town is not at the top of everyones list. It's dry, it's freezing, and there is still little to do there after years of constant development. Yet, house prices there are on par with what we see in the city of Toronto. Why is that? Because Fort Mac is the heart of the Canadian oil industry. Some people pay big prices for real estate in the area, and that drives prices much higher than Waterloo Ontario homes.
Fort McMurray is an exception to most rules, because real estate prices are high across the board. There are no specific neighbourhoods that are higher priced than others, another sign of a market which is completely out of touch with reality. However, when we are talking other Canadian cities, neighbourhood will have a significant impact on the price. Don't expect to find a home for sale in Rosedale for under $500,000, for example. The neighbourhood is exclusive by design and price, and people will pay more to get in.
You may even notice that neighbourhood prices vary from street to street. Windsor houses for sale on quiet cul de sacs close to schools, for example, will be priced higher than those on the busier streets. The reason is that a significant number of buyers of real estate are young families, looking for homes which are both safe and convenient for their children.
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