Thinking of buying a home in a different Canadian province? This week’s map illustrates the profit margins that Canadian real estate agents took in across the country in 2011, revealing some interesting market dynamics. While real estate profits have been down across the board since the market began to dive in 2008, the decline is starting to level out, and profit margins are starting to rise again. However, the geography of profitability is uneven across the country. What does this map show us?
Alberta’s oil-rich markets led to an explosion in real estate interests, but their margins are amongst the slimmest in the country. A side effect of tremendous competition? The lowest levels are seen in New Brunswick, but we’re inclined to believe the opposite situation exists there – real estate markets are depressed, leading agents and brokers to cut their rates.
The population centres of Toronto and Vancouver are arguably the centre of some big real estate bubbles, but these conditions don’t seem to boost their respective provincial averages – profits are probably a lot lower outside of these cities and their suburbs.
The highest profits are seen in the Prairies, where realtors have been taking in high profits despite the financial crisis – even after the market crashed in 2008, Manitoba realtors were collecting, on average, over 40% in profits. This sounds like it might be a result of trouble in the agricultural sector.