When Dave Snively began house-hunting about a year ago, he was looking for an updated home, a nice neighbourhood and plenty of outdoor activities nearby. But most importantly, he was looking for something inexpensive.
“I’m a commissioned salesperson, so some weeks I make a lot of money and some weeks I don’t. My wife’s at home with one child and another on the way, so there’s not a lot of money coming in,” he said. “It’s easier to save money when you spend less on a mortgage.”
Mr. Snively covers a sales territory in southern Ontario from Niagara Falls to Woodstock to Milton, so he could have chosen anywhere in between. He decided on Welland, where he was able to purchase a century-old, four-bedroom detached home for about $160,000 in 2010.
“I can pre-pay my mortgage an extra 20 per cent a month with my property taxes in and I’m still under $800 per month,” he said. “There’s virtually no concern at all about meeting the mortgage payments. We could have afforded more, but it’s nice to not have to worry about it.”
Welland, about two hours from Toronto, was listed in last month’s Coldwell Banker Home Listing Report as one of the five most affordable places to buy a four-bedroom, two-bathroom home in Canada, with an average listing price of $196,321.
No. 1 on the list, which is based on 70 cities where Coldwell does business, was Windsor, Ont., with an average price of $144,460. Amherst, N.S. was second at $194,700; Welland was third; Fort Erie, Ont., was fourth at $215,236, and St. Catharines, Ont. rounded out the top five at $220,883.
John Geha, president of Coldwell Banker Canada, said cities where prices are low can be attractive to young families in particular.
“You don’t want to be house poor. You want to be able to enjoy your life and not sit in the home and be afraid,” he said. “Because our markets are stable here and the economy is still strong, as your financial condition strengthens you can make a decision to buy a more expensive home later. But if you put yourself in a situation where you’re just stuck in the home, it’s going to affect you long-term.”
Mr. Geha says growth in more rural areas is also due to improving transportation options and the growth of the mobile workplace. “You can look at your decision about where to buy a home based not on where you work, but what you want,” he said.
As a restaurant manager living in Toronto, Jeremy Tyrrell was certain he and his family would be renters for life. “We just resigned ourselves to the fact that we would never own a house.”
Then he was transferred to Windsor. The family rented at first, but six years ago he saw a home for sale in the historic Walkerville neighbourhood and, on a whim, decided to find out the price. That house wasn’t right for them, but the real-estate agent did find a three-bedroom dream home in the same neighbourhood for just $103,900. Unexpectedly, the Tyrrells were homeowners.
“My sister-in-law lives in Leaside [in Toronto] and is looking at million-dollar homes that I don’t think are all that much nicer than ours,” he said. “We watch those Property Virgins-type shows on TV and just shake our heads in disbelief that people are buying 600-square-foot condos for three or four times what we paid for our house.”
Mr. Tyrrell said he’s been pleased with the “small town” feeling of Windsor, plus the fact that Detroit is right across the river for hockey games or theatre. Now working in sales for a Windsor hotel and casino, Mr. Tyrrell said his pay is comparable to his peers’ in Toronto – but there is a trade-off.
