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Toronto Real Estate: Hot or Not?
Ever wondered how houses have stood up as an investment?
Crunching forty years of stats from the Toronto Real Estate Board reveal a few surprises:
1,250%
Average resale house prices have increased a whopping 1,250 per cent since 1969 – about the same performance as the stock market, where the TSX composite index rose 1,244 per cent.
2.5x
Both house prices and the TSX outstripped inflation – which stands at 484 per cent over the last 40 years – by 2.5 times.
Drop
Since the last price peak of $280,676 in 1989, the average price across Toronto fell 31 per cent, to a low of $192,406 in February 1996.
Lag
Since that peak, some areas have enjoyed gains of more than 100 per cent, but in 40 of 85 areas tracked by the Toronto Real Estate Board, prices have not kept pace with inflation.
Buy
Smart buyers head out in January when prices are usually lower, and have been consistently the lowest for the year in the last decade. Often, they're rewarded with prices lower than the previous December.
Sell
May is the highest month for house prices, followed by December. One notable exception was 1989; prices peaked in October.
Hot
Top 40-year gains: Bridle Path, Forest Hill, Annex/Yorkville
Top 20-year gains: Clarkson (Mississauga), the Beach, Riverdale
Top 10-year gains: South Riverdale, East York, the Beach
Source: Toronto Star
July 13, 2008 in Buying Toronto Real Estate | Permalink
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Comments
Hot is gone....
Posted by: | Jul 17, 2008 3:37:17 AM
A very nice, simple and clean overview of the real estate development. Combined with other sites that, for example, have stats and prices, this could make up a good guide for first time sellers/buyers. And to say if it`s hot or not, I think it`s definitely hot, hot, hot.
Julie
Posted by: Toronto realtor | Jul 15, 2008 4:05:42 AM
