Toronto and Vancouver will continue to provide impressive returns for investors in 2016, but it’s another market that may be home to the best prospects.
“The surprise #3 from my perspective is Montreal; I use a hockey metaphor: Montreal in real estate terms hasn’t made the playoffs in years, it’s had a tough time and, as a result, the average home price in Montreal is much lower than other major or minor cities in the country,” Soper told Canadian Real Estate Wealth. “For example, average home prices in St. John’s Newfoundland are higher than in Montrael and that makes no sense based on the economic potential. There is much more opportunity (in Montreal).”
The average price for a property in the Greater Montreal area rose 2.3% in 2015 to $340,207, according to Royal LePage. It’s expected to see further gains in 2016 as well.
According to Soper, the City of Saints has dealt with it share of economic challenges. However, many of those – including its oversupply issues – have worked themselves out.
“As I look to 2016-2017, some of the broad-based macro-economic factors that benefitted B.C. and Ontario, such as the low Canadian dollar and those will all start to work in Montreal’s favour in 2016,” Soper said. “Quebec is both for manufacturing and for services exports – education and financial – it is an exporting province in a big way yet it didn’t see the kind of uptake in export volume that BC and Ontario have seen and I think we are starting to see the front edge of that improvement in the Quebec economy. And the lower Canadian dollar will (help that along).
“I would call it the most improved market in Canada … for 2016.”
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Phil Soper, chief executive officer of Royal LePage, is bullish on this one surprising market. This is why investors should take note.