At the fag end of the decade 2000-2009, it is worth while to look critically on the 10 years of Canadian real estate boom. This stands as one of the best period in the residential real estate history of Canada. The Toronto area witnessed really a boom with prices of resale homes grown to enviable levels making the market very lucrative. The real question to be answered now is that whether the present trend will continue in the coming decade.
According to some high end studies conducted by renowned agencies like ReMax, real estate business have never seen such a long boom period with the rising home prices. It is noted that prices of resale homes increased by nearly 80 % for an absolute compounded annual rate of return 6%. Apart from the price rise for the resale homes, number of units sold during the last decade was up by about 62% comparing the numbers of sales in 2099 with that in 1999.
The resilience shown by the Canadian real estate market in the past 10 years is really incredible. According the ReMax spoke person, “The Canadian real estate market has surprised a lot of people, especially given the challenges we’ve faced from a high-tech meltdown, the 9/11 crisis, SARS and a credit crunch south of the border.”
Many realtors are in one voice when talk about the sustained increase in the home prices. As per the real estate statistics, the average price of a home sold in Toronto in 1999 was about $220,000. It has grown steadily every year in the past ten years and has almost reached as high as $380,000 at the end of 2009. Really a growth factor of 1.7, about 70% up.
What are the major factors contributed to such a healthy surge of resale home prices? Good economic growth, low interest rates, availability of more funds, national and international conditions, the increasing demands and the consumer confidence in the Canadian market are some prime factors fuelled the boom in the last decade. Another important factor is the increase in immigration. It is estimated that Toronto witnessed an increase of 20% in this field.
Many experts in the economic field and the real estate business expect that the trend would continue irrespective of increased property taxes and the meltdown in the economy. You can expect a decent, if not lucrative, returns from the Canadian real estate market. You can very confidently invest in this market without any fear of loosing the hard earned money. All the growth factors of this market are in favorable positions.
