The Canadian housing market over the last 30 years has been subject to a report by REMAX Canada in acknowledgement to the most recent decline. Over this period of time the report derives that investment in bricks and mortar has always been one of the foremost and securest option.
The Regional Executive Vice President, Elton Ash expresses in the report that real estate analysts are still taken by surprise at the strength of the residential real estate market. In 1981, 1989 and 2008 there were large slumps in the housing market. Costs and sales have been increasing up for 6 months making the downturn in 2008 the shortest one ever. The real estate market no longer obliges the buyer, more people are using leverage to finance real estate investment.
Long term soundness of real estate investments is established on numerous factors in Canadians traditional belief in houses and condos. Real estate exhibits fiscal and material “fortresses” for the majority of Canadian investors. Over the last three decades there has been a considerable rise in the purchase of homes of over 6%. In Calgary that percentage is even more, going over 12%.
Vancouver, Victoria and Toronto had the highest jump in housing prices. Even though there have been slumps in the real estate market it has remained a good investment. In the first eight months of the year Greater Vancouver has seen an a rise of 14% sales and is the authority in this years housing market. Purchasers in the first time buyer market are the major competitors for this growth with a large portion also going to those that are moving up the property ladder.
Those who have kept their eyes on the resale market for some years shouldn’t be shocked – Vancouver is the best performing market in Canada, in terms of real estate prices increases!
Since 1980, the average price of real estate in Vancouver rose 473.7% while the average price in Canada reached 366.4%, from $100,065 to $574,061. For the similar period of time the amount of citizens owning their own home has increased nearly 10%. If you look at the rate of inflation over the similar time frame you can see the difference. Using the Bank of Canada inflation calculator, it got to 156.6% for the equivalent period. On an approximation you would see over a $300,000 net return on a real estate investment of $100,000 purchased 30 years ago.
This fact is not news to most Canadians. Housing rather than stock investment is the favorite choice of 77% of Canadians according to the September survey administered by The Angus Reid Omnibus.
