By: Susan Plgg Published: Simcoe.com, Sep 24, 2013
So you think Toronto’s housing market is crazy? Be thankful you didn’t opt for life on the farm.
Agricultural land prices have virtually doubled in some parts of Ontario just since 2010 and, so far this year, have continued to hit new records across much of Canada, according to a new report released Tuesday by ReMax.
“All in all, it’s been a couple of very good years on the farm, and you don’t hear that very often,” says Elton Ash, the B.C.-based regional executive vice president of ReMax Western Canada.
The main driver has been unusually strong commodity prices.
But there are other factors that have pushed farmland prices to silo-high levels in areas like Woodstock, Kitchener-Waterloo and Leamington. And it turns out they aren’t all that much different from the pressures plaguing big-city housing markets like Toronto’s.
The demand for prime land has so outstripped supply the last three years that it’s common to have multiple bidders — including Asian, European and other international investors — looking to snap up farms that come on the market.