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North America is currently in a massive real estate crunch, with sales plummeting to one of the lowest points the industry has seen in decades. There exist, however, a few choice spots sprinkled across the continent where real estate prices are actually on the rise, and where home values are continuing to increase. Factors such as amenity proximity, tax rates, interest rates, and urban location all contribute to a property’s appreciation in value.

Over the course of the past decade, new concerns such as the effects of global warming and geopolitical instability have changed the face of the real estate market, significantly affecting property values like never before. With all this taken into account, take a look at some North American cities whose real estate value will actually appreciate, going against the trend of a continent whose overall market seems to be crashing.

Vancouver, British Columbia

In 2010, Vancouver will play host to the Winter Olympic Games. This is driving the city’s (as well as the province’s) economy on all fronts, not just real estate. If you’re a savvy investor who’s studied the trends of previous host cities after the Olympic Games, you might be wise to pick out your plot as soon as possible, before they all get snatched up.

Vancouver is expanding vertically, and not just with higher commercial skyscrapers and ever-developing condominium complexes, but with many new homes being built on the mountain backdrop itself. The median cost for a condo in Vancouver as of July 2008 is about $445,000. Although the price is down from last year when the housing market was more stable, it’s still impressive when you compare it with the median price of $183,000 for condos in a city like Montreal, for example. Vancouver prices are more like those for luxury condos in places like Mont Tremblant.

Vancouver is definitely worth keeping your eye on. There are plenty of jobs available in the public job sector, with an expected job boom leading up to the Olympics. Well-educated and experienced people can also find comfortable positions as the trickle-up from base industries runs its course. It is expected that prices for condos in Vancouver will rise next year and will continue to increase in price and value well into the next decade. The BC credit union is already expecting a rise in price of about 12% for the remainder of this year and is expecting a further increase of about 12%-14% for 2009. With these projected trends, home owners can expect significant amounts of capital return.

Your two best options in Vancouver are to either earn off of the upswing before the Olympics with a well-timed sell schedule, or to search for a nugget that will level out to a higher average once the Olympics has left. Vancouver will attract a lot of spectators for the Games, and the beautiful combination of ocean and mountains will certainly attract many potential home buyers.

North Dakota

With both natural gas reserves and crude oil supplies, the market in North Dakota is doing very well this year, and is one of the only three states to have experienced any real estate appreciation, along with Texas and Oklahoma. This is an impressive feat considering the United States is currently in the worst foreclosure crisis in its history.

While their energy industry continues to create new jobs, the mortgage lenders have refrained from offering any subprime financing. As a result they’ve maintained a strong economy, they’ve avoided the current deflation hitting most real estate markets across the US, and they’ve remained independent from any problems suffered at the banks. Toronto, Ontario For the last ten years Toronto has been building condos like mad. The construction alone is offering a wealth of job opportunities. The average selling price for larger homes is expected to cool down somewhat, but prices for property in the Toronto area this year were on average 11% higher than the year before.

Since Canadian banks never issued subprime mortgages, the Canadian real estate market has been capable of absorbing the cost of unsold units and has not suffered mass foreclosures. Toronto is the center of economic power in Canada, and is one of the more dense cities on the continent with a highly effective public transport system. Couple these with the fact that Canada is expected to profit the most from the advent of global warming, and you have a vibrant city whose real estate market and home values have nowhere to go but up.

Sumitted by Emmy at Tremblant Living Real Estate

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