Is Real Estate Outside the City More Attractive?
The GO service is expected to run every 15 minutes to ease traffic in the GTA and make commute easier. The transit service will make suburban properties more attractive over the next few years. The market is hot already, with homes being sold for about $431,000 on average. The volume of property sales recently hit a record high, and real estate agents predict a steady increase in prices, which is a fact already. The GO service will run between Oshawa and Burlington as well as Unionville, Aurora, Bramalea, and Union Station.
In addition to population growth in local communities, public transit offers additional benefits and makes money. It is transit infrastructure that attracts developers and drives construction, including civic improvements such as hospitals, retirement homes, courthouses, and so on. Private developments also benefit from public infrastructure, and developers reap the profits. On the other hand, commuters also benefit from the improved transit infrastructure. Toronto is known for being the second most congested city in Canada (after Vancouver) and is ranked 47th worldwide. As one of the most congested areas, GTA is a high density area in need of a faster and more convenient transit service for local communities. And given the high prices in Toronto, many homeowners are already in search of affordable housing in suburban areas such as Richmond Hill, Oakville, Whitby and Pickering. Besides, affordability in the 416 already declines. The costs of running a car are high, however. Many Canadians are looking for additional funds to purchase a vehicle and apply for car loans (click here). Others use secured credit cards and consumer loans to make a down payment (click here). Still others choose to use public transit.
Real estate agents note that there is a low listing activity in the area due to factors such as migration, population growth, the weak Canadian dollar, limited supply on the real estate market, and low mortgage interest rates. It seems that real estate outside the city is becoming more attractive, and reports show that listings in Toronto Area are down by close to 20 percent. In fact, the price of detached homes has already increased by about 60 percent in the Golden Horseshoe during the last decade, and there is a shift toward a slight but steady increase in the GTA along the new fast commute. Transit is likely to shape local communities and life in the area because of the improved regional access. Better and faster commute drives local economies and development and possibly higher density and population growth. Developers and estate agents expect density to grow, especially in areas near the transit hub, and condominiums are already built along the line. Construction works are already taking place along the route between Union Station, Bramalea, Aurora and Unionville. Some experts even predict that tax levies will be set on developments along the GO service.