If you have potential buyers still hesitant to get into the market, they should consider the following: as well as providing them with the house of their dreams, real estate has proven to be a solid investment over the last 25 years.
Six of the 17 housing markets featured in the study of prices from 1981 to 2005 are in Ontario. Barrie is at the top of the list posting an exceptional 372 per cent increase in average price ($51,665 to $244,000) over the 25-year period. Other Ontario communities where price appreciation topped 200 per cent include: St. Catharines, 329 per cent; Hamilton-Burlington, 325 per cent; Ottawa, 297 per cent; Greater Toronto Area, 290 per cent and London, 228 per cent.
The report attributes these price gains to a strong economy, job security, consumer confidence and historically low interest rates. “From a demographic standpoint, both baby boomers and generation X continue to express their belief in homeownership by amassing property. Immigration and population growth have also contributed to the health of the residential marketplace.”
Another report by Scotia Economics says “the finances of Canadian households are in good shape and household wealth has reached unprecedented highs, thanks to years of solid, uninterrupted economic growth accompanied by falling unemployment and rising home and stock prices.” And, in its Long Term Outlook for Canadian House Prices report, TD Economics predicts house prices will rise an average of 4 per cent annually over the next 25 years.