Barrie and Canada: Investment Outlook

Barrie and Canada: Investment Outlook

Barrieā€™s Near Future

According to the Canadian Mortgage and Housing CorporationĀ  Barrie is expecting an 8.8% increase in Single-Detached housing starts moving into 2014 and a 5.3% increase the year following. Similarly Multiple dwelling starts are expected to see positive increases proceeding into 2014 and an increase in percentage change continuing into 2015. As well, we expected to see an increase in the average price of a home on MLS of about 2.85% over the next two years, coupled with an increase in sales. According the Canadian Mortgage and Housing Corporation Barrie is also expecting a 10% reduction in the vacancy rate this coming year and increased average rent. So why do these statistics matter? They matter because they are hinting at a healthy investment environment in Barrie for the next two years.

These increased starts, coupled with increased purchase power as a result of low interest rates and a recovering economy, will continue to push up property value and drive activity in the markets moving into the near future. Now the hardest part is finding that investment that is right for your budget and is also priced at a point where the CAP rate is not overvaluing the property. With positive market trends moving forward you can be sure that people will be trying to cash out and also get into the market so keep an eye out and always make sure to consult your Brokerage for advice regarding your current and future investments. They will be able to advise you on what the best course of action for selling your current investment might be or what to look for and why when picking up a new investment.

2014 Real Estate Investment Trends to Watch in Canada

  • Solid fundamentals will continue to characterize Canada’s real estate market, buoyed by what is anticipated to be a period of moderately stronger economic expansion.
  • Property values will continue to range close to the peak, supported by robust investment demand and low interest rates.
  • Income performance will remain positive over the near term as rental markets in all sectors post solid occupancy levels, positive demand trends, and stable or modest increases on 2013 rental rate averages.
  • Capital flows into Canada’s property investment sector will remain robust over the near term, boosted by the eventual return of capital market buyers (i.e. REITs and Real Estate Operating Companies).
  • Construction activity will rise significantly over the next few years in the industrial and office sectors, with developers hoping a stronger economy will see these properties leased quickly. The ongoing delivery of new supply in the nation’s major downtown office nodes could lead to increased vacancy and downward pressure on rents, if demand fails to keep pace over the next few years.
  • The arrival of U.S. retailer Target will continue to impact the retail sector, as the discounting sector adjusts to new competition. The broader retail sector will continue to adjust to changing shopping channels, formats and consumer preferences.
  • The multi-family residential real estate sector will continue to stabilize, as rental buildings remain largely full. However, competition from the rental condominium market will be monitored closely by landlords in the purpose-built market segment.

SOURCE Morguard Corporation