Canadian home prices almost double between 1997 and 2007

Canadian Real Estate Investing Discussion
FinancialAdmin
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Canadian home prices almost double between 1997 and 2007

Postby FinancialAdmin » Wed Jun 04, 2008 6:29 pm

I found this interesting article, discussing the average real price appreciation in Canada in the last decade. Canadian home prices almost double between 1997 and 2007:

http://www.financialpost.com/story.html?id=324796

The average yearly compound gain for Canadian real estate has been 7.1% and this is surely not sustainable with stagnant wages, job losses and economy on the brink of recession or already in recession, depending on who do you ask.

gonzo13
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Re: Canadian home prices almost double between 1997 and 2007

Postby gonzo13 » Wed Jun 04, 2008 11:18 pm

It has been a good run. I am not sure if it is going to continue like this or if the market will go flat.

spencer
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Re: Canadian home prices almost double between 1997 and 2007

Postby spencer » Sat Jun 07, 2008 6:51 pm

The market is going down big time! Look at Toronto, sales in May are almost 20% down from 2007. Is that what you call flat?

rock
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Re: Canadian home prices almost double between 1997 and 2007

Postby rock » Tue Jun 10, 2008 3:26 pm

spencer wrote:The market is going down big time! Look at Toronto, sales in May are almost 20% down from 2007. Is that what you call flat?


I think some parts of Toronto will remain largely unaffected, even if there is a prolonged downturn in the Toronto's real estate market starting 2008. Neighborhoods like Rosedale, Forest Hill, Deer Park, Summerhill, Lawrence Park, The Beaches, Yonge and Eglinton will keep their prices flat in my opinion, even if other locations in Toronto and GTA, go down in value.
Last edited by rock on Tue Jun 10, 2008 7:30 pm, edited 1 time in total.

gonzo13
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Re: Canadian home prices almost double between 1997 and 2007

Postby gonzo13 » Tue Jun 10, 2008 4:10 pm

rock wrote:
spencer wrote:I think some parts of Toronto will remain largely unaffected, even if there is a prolonged downturn in the Toronto's real estate market starting 2008.


What about the condos comparing to the houses? I think the condos will lose a lot of their value comparing to the houses.

proplanner
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Re: Canadian home prices almost double between 1997 and 2007

Postby proplanner » Wed Sep 17, 2008 12:29 pm

gonzo13 wrote:It has been a good run. I am not sure if it is going to continue like this or if the market will go flat.

Real estate is such an investment where there is minimum chance of loss if you are buying any property. It may not grow like it used to but you cant think of going down.

theway
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Re: Canadian home prices almost double between 1997 and 2007

Postby theway » Mon Oct 20, 2008 2:39 pm

proplanner wrote:Real estate is such an investment where there is minimum chance of loss if you are buying any property. It may not grow like it used to but you cant think of going down.


There is a great chance of serious loss if you bought near the top of the housing cycle. Look what's happening in the US - the prices are way down from the top and there is no bottom in sight. The same just started happening in Canada this year. Two years from now we may see prices down 30-50% from the top and this is a long way down. Once the bottom has been reached the prices will stay stagnant for at least a few years.


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