T.O.’s best-buy housing areas
Study identifies affordable areas Armour Heights or near High Park
Sep. 14, 2006. 07:05 AM
TONY WONG
BUSINESS REPORTER
With Toronto neighbourhoods becoming pricier and less affordable, fringe areas are experiencing an upswing in sales as buyers move away from blue-chip neighbourhoods into areas that offer more of a financial upside, says a study.
According to an “up-and-coming” neighbourhoods study by ReMax Ontario Atlantic Canada released yesterday, there are still areas downtown that offer good value, but don’t expect to find them on the Bridle Path.
The top up-and-coming neighbourhood, according to ReMax, is in the Bathurst Manor and Armour Heights district of Toronto, north of Highway 401 in the city’s central core. In second place, neighbourhoods outside High Park, such as Roncesvalles, Brockton Village and the Junction, scored high for value.
“Affordability remains key in the Toronto market, and especially for the first time buyer,” said Christine Martysiewicz, spokesperson for ReMax Ontario Atlantic Canada. “As a result people are looking to fringe neighbourhoods.”
Bathurst Manor, a neighbourhood with roots in the 1950s characterized by semi-detached and ranch style homes, had a 33 per cent increase in sales in the first eight months of the year compared to last year, according to ReMax, as younger buyers discovered the area’s affordability.
Armour Heights lies between Bathurst St. and the Don River valley from Earl Bales Park south to Wilson Ave. Highway 401 cuts across its south end.
Lot sizes are good for a central location, and prices start as low as $160,000 for condominiums and average $350,000 for a freehold single-family home.
“The area is undergoing a real revitalization, with a lot more infill and new construction happening,” said Martysiewicz.
The 401, which cuts along the neighbourhood, seems to act as both a physical and economic boundary: Similar houses south of the 401 could be as much as $200,000 more.
Michael Polzler, executive vice-president of ReMax, said the key to maximizing value in a strong housing market is to find those undiscovered neighbourhoods, particularly those neighbourhoods that are on the fringe of more prestigious “blue chip” areas that have good potential for price appreciation.
The Junction area near High Park is one example, he says. While homes in Bloor West Village and High Park — an area that has achieved something of an elite status — start at a minimum of $400,000, similar homes can be found in the adjoining Junction area — which is still undergoing a revitalization, for about $275,000.
The same situation applies in the Scarborough area that borders on the coveted Beach neighbourhood. Prices in Scarborough start at $300,000, while a similar Beach home would start about $500,000.
Some buyers are moving out of the city altogether in a quest for more bang for their buck.
The Markham-Stouffville area is ReMax’s top pick for suburban locations. Home resales have risen 33 per cent there in the past year, the company said.
Resales in neighbouring Richmond Hill have also seen an 18 per cent increase. Further east, Pickering and Ajax have also seen double-digit gains.
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