Average House Price Will Increase 4% Per Year for the next 25 years.

Average House Price Will Increase 4% Per Year for the next 25 years.
TD Bank Financial Group- September 2006

Home prices in Canada should rise 4% annually on average over the next 25 years, although that won't hold for all houses in all markets, according to a TD Bank report.

"Our report confirms the old adage that real estate is all about location, location, location,'' Craig Alexander, deputy chief economist of TD Bank Financial Group, said in a release. Victoria, Vancouver, Toronto and Montreal are the cities will see higher prices than 4%. Calgary and Edmonton should see "above average price gains in large part due to favourable economic prospects, stronger projected population growth and younger population than many other provinces. [Alexander also noted that] "over the long haul, property values in these urban centres should do well, but the average annual price increase should be at a mid-single digit rate.'' The report said slowing population growth will be offset by rising home ownership rates, rising personal income, a lower long-term rate of unemployment and more modest construction of new homes. "Fears that baby boomers will severely depress housing markets as they sell their properties are overblown,'' Alexander said.