He wondered to me out loud one day afterwards, what if his grandfather had invested that same fortune, $4,000, on property? What would or could his return on investment be today if that money was invested in residential or commercial properties in a major Canadian city such as Calgary, Toronto, Vancouver or Montreal?
According to a Re/Max report, looking at the value of homes in 16 major markets across Canada, an average home in these markets was worth $339,030 as of last year, more than double the average price of $163,951 in 2000. That's just 10 years! Couple that with the estimated $450 billion spent on renovations in that same 10 years, huge foreign investment and growing populations that show no signs of slowing down in the future, the growth is expected to continue.
This begs the question – will we see another doubling of prices in the next 10 years?
So many factors will contribute to any solid forcast, including the financial markets, continued foreign investment and population growth, along with many many more factors. But, I think it’s certainly possible. It will also be interesting going forward to track trends in new construction, condos, and suburban growth and if they can compete with, and create some alternatives to city-center single family homes.
(The 16 markets that Re/Max studied were: Greater Vancouver; Victoria; Kelowna, B.C.; Edmonton; Calgary; Regina; Saskatoon; Winnipeg; Ottawa; Greater Toronto; Hamilton-Burlington; Kitchener-Waterloo in Ontario; London, Ont.; Saint John, N.B.; Halifax-Dartmouth and St. John's.)