Friday, October 10, 2008

Rising Property Value Time Frame

Hamilton, just outside of Toronto, is expecting increases in property value from light rail that would be in the new Toronto long range plan.

It will rise again soon, suggested a real estate report yesterday. Older properties near King, Main and James streets will gain the most in value if Hamilton gets light rapid transit, as city staff hope. So says the Vancouver-based Real Estate Investment Network, which looked at the housing value added by big transportation projects in Hamilton and Kitchener.

Study co-author Don Campbell says the value of homes within 800 metres of new rapid transit or GO stations will rise 15 to 20 per cent more than homes in non-transit areas. He's excited by the prospect.

Somewhere in the article they discuss that it will take a year, but I'm not sure if that is believable. I often wonder with studies like this what the real time frame is. Such a quick time frame doesn't seem reasonable while a long time frame seems so far off it might just seem like regular increase. They also say that there is a price premium on living near highways.

But he said property near the Red Hill Valley Parkway will see real estate increases in the years ahead. Being one to three kilometres from easy highway access can give you a 10 to 12 per cent premium on your home's value, he said. Transportation-related premiums -- which insulate homeowners from market downturns -- appear a year after a project is done, he added.

Though I wonder how much that will change with gas prices. In a PBS special that is going to air soon, they interview a family who are spending over $1,000 a month on gas because they live so far away. Those housing prices have to reflect that truth. As my colleague Scott Bernstein says, we need to build cities that isolate citizens from these peaks and valleys of cost. I believe the biggest way to do that is to invest in sustainable transportation.

1 comment:

Real Estate Agent said...

Good to hear home values somewhere in North America are headed upward. Change is always good when it benefits residents. Providing an affordable form of transportation that makes life better and increases home values is great for the people of the area.