Toronto Market Increases 11.13% Annually over 15 Years
Real Estate Performance over Fifteen Years (2003 to 2017)
A fifteen year time period is fairly extensive in terms of measuring performance of any asset class.
The average sale prices as reported by TREB for single family homes of all types in the GTA, including houses, townhouses and apartments, for the period ending 31 December 2002 was $275,371. That’s the same as the first of January 2003 number.
The December closing number for 2017 was $735,021.
Let’s start out at the beginning of 2003 and compare that to now. We saw a $459,650 increase or 166.92% over 180 months, or 0.0093% per month which is 11.13% annually. That’s the straight line percentage calculation not one which is internally compounded.
So, that’s an 11.13% annual increase over 15 years.
That’s a very excellent return over a 15 year period.
As we get into longer periods of time like this, it may be “comparing apple to oranges”. The housing stock is not the same, it’s being gradually updated.
Brian Madigan LL.B., Broker