The Canadian housing market over the last 30 years has been subject to a report by REMAX Canada in acknowledgement to the most recent market downturn. Over this period of time the report derives that investment in bricks and mortar has always been one of the principal and safest option.
“The strength of the residential housing sector cross-country has taken lots of economists and housing analysts by amazement once again,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. In 1981, 1989 and 2008 there were big declines in the real estate market. In contrast to the 1981 and 1989 market downturns the downturn in 2008 was the shortest with sales and prices quickly increasing again. Buyers have lost their market, which has now turned into leveraged or even a sellers’ one.
There are a few rationale why there is a long term investment in the Canadian housing market. A fiscal and material asset is how some Canadian Investors see property investment. Looking at 1981 to the present day there has been an elevation of over 6% in home ownership. In some regions it is higher than that, for example, Calgary 74.1%.
Vancouver, Victoria and Toronto had the largest jump in real estate prices. Albeit there have been slumps in the housing market it has remained a good investment. This years greatest growth in the real estate market comes from the Greater Vancouver area with a massive 14% increase. Motivation is coming from those buyers that are trading up but the most significant growth is by the first time buyer.
Those who have kept their eyes on the resale market for some years shouldn’t be shocked – Vancouver is the greatest performing market in Canada, in terms of real estate prices value!
In the previous three decades Canadian real estate prices have grown a 366.4%, but Vancouver has seen an even greater rise at a whopping 473.7%. For the corresponding period of time the amount of people owning their own home has grown nearly 10%. Just contrast this with inflation for the exact period. According to the Bank of Canada inflation calculator, it reached 156.6% for the same period. On average you would see over a $300,000 net return on a real estate investment of $100,000 taken out 30 years ago.
It may come as a revelation but it seems that Canadians were already familiar with this. In a very current Survey by The Angus Reid Omnibus, nearly 80% of Canadians put real estate investment over stock investment.
