76/ OCTOBER/NOVEMBER 2011 THE RIDER REAL LAND VALUES RISING?? ESTATE:


A recent article in the Hamilton Spectator talked about farm and land values rising. It was one of those generic stories, gathered from some other source and not overly clear, more of a statisti- cal commentary than anything else. Are land prices rising..in my opinion, yes. The problem is when you use statistical infor- mation it tends to take a wide spectrum of informa-


tion and apply it lately.


Land values have risen but especially in the more desirable areas which are close in to major cities and industry. The prices have been driven up in our immediate area by specula- tors such as the ones who deal with our office and are buying and have spent Ninety Million Dollars purchas- ing local farm properties. This one particular company are doing strate- gic purchasing, thinking our smaller city will eventually grow northward into the larger cities like Cambridge and Kitchener


With easy access to the major highways and with populations grow- ing into these cities from the even larger cities like Toronto, London and Guelph their insight into the future is probably correct. It reminds me of how Etobicoke, Mississauga, Burlington and Oakville seem to have all merged into one big city.


bought by investment companies has made it hard for the farmer to buy land at affordable prices. A lot have sold to developers and have the means to pay a bit more for replace- ment farms for their families and are doing so. This then drives up the price of farms which speculators are not interested in.


somehow foolishly believed they would.


Crime is on the increase in larg- er communities, gangs, busy high- ways, high property values and taxes so retirees, young couples, couples raising families all perceive the small cities and towns as quieter, nicer places to live. And they aren’t wrong. We have lower priced homes, rural properties are not just a someday dream because they are affordable here and our lifestyle is much less hectic.


When it comes right down to it we all basically live the same lifestyle..we go to work (nicer if it’s closer and no main highways to travel on the winter to get there), we watch the same television programs, we exercise, partake in the same leisure activities, we go to the same large grocery chains, movies, restau- rants...what have you. Why not do it where life is simpler?


Land values rise as demand rises and land is not something we can reproduce. When speculators start paying double what land is worth this pushes prices upward and the past five years of land being


Kawartha Lakes Erin, Caledon & Surrounding Areas


Green Belt Legislation is anoth- er government inflicted policy which has driven up the price of farms and land. Because it is so expensive to pay and maintain infrastructure the government decided to promote more growth into inner cities and promote development in brownfield areas which were sitting dormant rather than have families wanting to move out and away from city life but still want roads maintained, school ser- vices, garbage pick up etc. The Greenbelt Legislation in essence has prohibited growth in the out laying areas around cities. No lot severances anymore, (which made building a home in the country more affordable for young families, ) no severances that would provide more residential housing in general, in rural locations. I used to get a laugh out of peo- ple who would call me with the idea of purchasing a small acreage or farm and how they perceived the new leg- islation was going to make all the farms, land and rural property drop drastically in price. Consumers need to remember the old rule of supply and demand.


We have GREAT DEMAND for rural living and because of up swinging prices and lack of availabil- ity because of government restric- tions on providing more land for resi- dential use...guess what happens?? Prices have risen far more rapidly then anything offered for sale in the city. A farm purchaser now is out of the reach financially of most buyers and no me more smaller rural lots with homes on them are being devel- oped. Prices have rocketed! Not dropped as most of the consumers


Durham Region


So as a final summation. Yes land prices have certainly risen, most farms are now not an affordable pur- chase for most people and prices have also risen quickly on smaller rural properties because no more smaller rural properties are being developed. This has been a steady market trend for the past several years and I think things will continue this way as time and years pass.


Teri Davidson Is Broker/Owner of Associate Realty Brantford Inc. Teri has been a licensed Realtor for 34 years and specializes in country sales and purchases for her clients. She and her family enjoy country liv- ing as they also own and operate “White House Farm” in Ancaster, Ontario where they raise and train AQHA Registered Quarter Horses and APHA Registered Paints. As well as Quality Registered King Sized German Shepherd Dogs. Contact Teri at teridavidson@rogers.com


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