ReMax recently published a 26 page review of the last decade in Canadian real estate.
If you are interested in specific Canadian cities and regions and what's been going on, this report provides a good synopsis, shows the statistics and the factors that have been influencing change in local areas.
Not too technical for the layperson to follow.
The accompanying press release issued by ReMax revealed some facts that you may find interesting:
1. What factors influenced the growth?
"Never before have we seen such a continuous run up in Canadian real estate. Clearly, strength in all markets has been directly linked to solid growth in local, provincial and national economies. Low interest rates, job security, and consumer confidence have all served to further bolster home-buying activity across the nation."
"Pent-up demand, population growth, tight inventory levels, and the longest economic expansion since World War II collectively fueled one of the best decades on record for residential real estate in Canada."
2. How much did prices rise nationally over the decade and annually?
Nationally, average price almost doubled in the 10-year period, rising from $154,606 in 1997 to $307,265 in 2007, for a 7.1 per cent annually compounded rate of return.
(How's that for a good return on investment?, says Boris)
3. Which city had the highest price increase?
Edmonton, Alberta, which saw a 203 per cent upswing in housing values - or an 11.7 per cent increase annually - with average price rising from $111,587 a decade ago to $338,636 in 2007.
Calgary ranked second second in terms of price appreciation at 189 per cent, Kelowna at 179 per cent, Saskatoon at 137 per cent, Winnipeg at 118 per cent, Victoria at 114 per cent and Greater Vancouver at 99 per cent.
3. Which province had the highest increase in unit sales?
Prince Edward Island, with the number of homes sold up 119 per cent in the 10-year period.
4. What about the impact of foreign buyers?
"Immigration and in-migration have played a serious role in jumpstarting residential housing markets, particularly in British Columbia, Alberta, and to some extent, Saskatchewan over the past decade.
At first, there was an influx of American buyers, especially in Canada's coastal regions and recreational hot spots, as our southern neighbours took advantage of the almighty US greenback. Then the European and Middle Eastern purchasers flooded the market, buying up real estate considered ‘cheap' by international standards. In recent years, there have been a growing number of purchasers from Mainland China. From a global perspective, there's no question that Canadian real estate brings good value to the table."
HILARY'S TWO CENTS:
One of the things that these solid stats reveal to me is the strength of the Canadian economy on which the Canadian real estate market is predicated. Since Canadian home prices when compared to global prices are still relatively low, Canadian real estate continues to be a good buy for foreigners.
The challenges being faced in the U.S. economy will impact our national housing market such that the housing price appreciation we have seen in the past decade will be moderated. However, at the risk of stating the obvious, (Economics 101) I believe we will continue to see price appreciation especially in areas where demand for housing continues to be strong and there is a limit to supply. This includes GTA, Oakville, Burlington.
Hilary Shantz is an Oakville, Ontario REALTOR who writes www.theoakvillebuzz.com, a blog about Real People, Real Events, Real Estate