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Simeon Mitropolitski is a Canadian analyst, of Bulgarian origin, and a former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with hot political and economic topics, both national and international.

He was part of the first group of Bulgarian intellectuals and students that began the opposition movement that finally put an end to the communist regime in this country in 1989, and in 1996-1997 participated in international observation teams during the elections in several Balkan countries - Romania, Albania and Bulgaria.

In 2002 Simeon and his family moved from Bulgaria to Canada where they live now in Montreal, province of Quebec. Simeon is a Master of Political Science from McGill University and a B.A. of Political Science and History.

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When we talk about Canada and the real estate market in this country, the first things coming in our minds are probably the skyscrapers of Toronto or Montreal or maybe in Vancouver. But Canada comprises also vast territories from coast to coast, different landscapes with various industries and services that may produce their own cycles of market development, which doesn't fit the general trends. In times of economic uncertainties like now, this may be of use for the investors looking for safe returns.

Four Atlantic provinces of Canada retain the prize of being the most affordable places to live in the country. The average price of a detached bungalow even at its present record levels, stands at $121,500*. After gaining more than 5% in absolute terms in the recent year, the prices contributed to an increase of the cost of owning of such a bungalow to $883 per month. Even with such increase the affordability for owners is relatively good with only 26,8% of their household incomes going to cover the mortgage payments, property taxes and utilities.

Although the housing starts in Atlantic provinces were flat in the last year, the resales were up by 8%. In Halifax alone (which accounts for one-third of total real estate market in the region) the sales were up more than 10% after declining by 4% in 2000. High affordability, relatively low prices coupled with the prospects of economic recovery suggest that 2002 will most probably be a year of stable housing market.

On the west side of the so-called core provinces (Ontario and Quebec) are situated the prairie Manitoba and Saskatchewan. With the home ownership costs of $1000 per month (29-30% of the total household incomes) these two provinces are in the low half of the national rank list. In Manitoba in 2001 we saw the same market pattern as in the Atlantic provinces - relatively low prices, relatively good affordability, lowering interest rates and all this coupled with price increase of more than 5%. As for the Saskatchewan the weak market performances in the last year were explained at least partly by the severe drought that hit the province. With the farm incomes not expected to increase by the next 12 months the market perspectives in Saskatchewan remain gloomy.

A rather different story represents the energy rich province of Alberta. The higher than average home affordability there isn't a result of the low prices ($164,000 in average) but from the higher incomes. New housing starts in the last 2-3 years didn't match the rising internal migration from the other Canadian provinces and the result was that the prices increased by 15%. This trend is expected to continue in 2002 given the good performances of the local economy and relatively high oil prices.

In other words, Canada isn't only Toronto, Montreal and Vancouver, there are other cities and regions that may be attractive for investors on the real estate market. In times when traditional markets still feel the effects of the 9/11, these new regions could become more attractive.

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* - All prices are in Canadian dollars ($ 1 US = $ 1,57 CAD)

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See also the directory of companies providing real estate services in, and general real estate information of Canada.