Canadian house prices set to double in 20 years: CIBC
- Thread starter CBC News
- Start date
I tend to agree with the topic premise that houses will double in twenty years.
We've owned seven houses in our lifetime and just about every one of them doubled in value during the time we owned them. We bought our current home just over two years ago and according to the real estate sharks, it has already gone up by 70 percent but it is all a game. The prices only matter to those entering the housing market for the first time. They have my sympathy.
We've owned seven houses in our lifetime and just about every one of them doubled in value during the time we owned them. We bought our current home just over two years ago and according to the real estate sharks, it has already gone up by 70 percent but it is all a game. The prices only matter to those entering the housing market for the first time. They have my sympathy.
I would imagine that what with the combination of inflation and the ever growing population putting pressure on housing, house prices would double EVERY 20 years, indefinately
Coincidentally, when I went into my branch of the CIBC yesterday, three different branch managers tried to push a long term mortgage onto my wife and I. They promptly shut up when I told them that mortgaging meant "having to buy a house and live here for an extended time." When I do buy a house, I want it to be a one time deal, and I want it to be an amazing house; if you're gonna get hosed with a mortgage, you might as well have something nice and of high quality to show for it.
It boils down to location: isolated rural communities will always have a glut of available housing available to keep prices in check, while expanding cities and their suburbs, who it seems cannot build new housing fast (or cheaply) enough, will suffer. In my little tiny town here, I am currently renting a two-story, two bedroom house with a massive yard, three car driveway, on an isolated street, that is only a 10 minute walk from downtown for less than $500 a month. In Ottawa and Thunder Bay, I got a 1 1/2 apartment in sketchtown for $750, parking not included.
It boils down to location: isolated rural communities will always have a glut of available housing available to keep prices in check, while expanding cities and their suburbs, who it seems cannot build new housing fast (or cheaply) enough, will suffer. In my little tiny town here, I am currently renting a two-story, two bedroom house with a massive yard, three car driveway, on an isolated street, that is only a 10 minute walk from downtown for less than $500 a month. In Ottawa and Thunder Bay, I got a 1 1/2 apartment in sketchtown for $750, parking not included.
You are probably right. We bought our first house forty years ago for about $20,000.00. It was a new house in a new subdivision. The housing market at that time was a bit hysterical. I was transferred to Winnipeg three years later and I sold that house for just over forty thousand dollars. I was in Winnipeg for just about three years and when we got back in 1976, that original house was on the market for $110,000.00. Since that time, houses have generally doubled every twenty years.
That's a conservative estimate. I expect the Kawarthas to see doubling in 7 years. We've missed the big Barrie and Waterloo gains but growth is moving this way and a major highway completion set for 2012 should put juice into housing stats. Ride the wave...
My accountant told me that if I sold my house for whatever reason, I should try to buy a house of equal or slightly higher value to replace it. He claimed that buying down would push you further out to the suburbs. Very few houses drop in value.
Given my druthers I'druther live in the burbs than in town. Yick!!! I'd rather live in the rurals than the burbs, although there are sacrifices like convenience, for one thing. It's 15 minutes to the nearest general store. Same for fuel.
We have to reduce demand and increase supply. We must ask our self what is a reasonable value for a property. It can't be to low if we want decent upkeep but it also shouldn't be several times the cost to build it.
A small price to pay for tranquilities sake. I would also rather live in a rural setting, with a small hobby farm. That's how I was raised, with the nearest grocery store about the same distance as it is for you Les. Growing up, I spent the mojority of my time outside playing 500 with neighbourhood friends in our large yard, or building camps on our wooded land. Had a brook right next to one of them. I'd like my kids to know that, know how to produce things from the land. Plus no busy highways
I won't. I intend to be a Lord. I am distantly descended from Lord Heigh, mentioned in the magna carta
Its unlikely.
3% is merely trend, about the rate of growth in housing prices the last 100 years.
However, the last 5 years have seen unprecedented growth of, what 10-15% per annum? You have to believe there has been a structural change in housing markets the past five years to assume housing prices are going to rise at trend for the next 15 years. Since structural changes happen maybe two or three times a century, its is unlikely the home price appreciation we have seen is permanent.
3% is merely trend, about the rate of growth in housing prices the last 100 years.
However, the last 5 years have seen unprecedented growth of, what 10-15% per annum? You have to believe there has been a structural change in housing markets the past five years to assume housing prices are going to rise at trend for the next 15 years. Since structural changes happen maybe two or three times a century, its is unlikely the home price appreciation we have seen is permanent.
No doubt. My thoughts were how the headline was rather misleading. By saying house prices are expected to "double over the next 20 years" makes it sound more lucrative than 3% per year. That's what sells news though.