HISTORY OF REAL ESTATE VALUES IN CANADA

1945 to 2005

By Dino Nicosia, Broker of Record, Investpro Realty and Appraisal Ltd., Brokerage

History has proven that Real Estate values will grow exponentially over the long term. The last 60 years (since end of World War II) has been very indicate on how Real Estate values double about every ten years.

No other investment vehicle can guarantee, if held long enough will exceed or keep in line with inflation. The following chart clearly shows Real Estate values increasing over the last 6 decades, and the trend is sure to continue. However you should expect some economic turbulence along the way, but in the long run expect tremendous growth.

According to the Bank of Canada, a basket of "goods and services" in 1945 that would have been worth $5,500.00, would be valued at $64,421 today, as a result of inflation. Comparing this relationship to home values; in 1945 the average home was valued at $5,500, and sixty years later the average house price has jumped to $260,000; by far exceeding inflation.

The Hamilton Market.

In the last 25 years, local real estate has flourished. The price of a home in Hamilton has soared an average of 325 per cent since 1981. The cost of living for the same period has climbed 121 per cent. In comparison, the average income has increase by 172 per cent.

Can anyone afford not to invest in Real Estate?