Toronto Market Increases 12.41% Annually over 20 Years
Real Estate Performance over Twenty Years (1997 to 2017)
Twenty years is a significant time period to compare. How did real restate do over that time period?
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 1996 was $211,307. That’s the same as the first of January 1997 number.
The December closing number for 2017 was $735,021.
Let’s start out at the beginning of 1997 and compare that to now. We saw a $525,714 increase or 248.16% over 240 months, or 0.0103% per month which is 12.41% annually. That’s the straight line percentage calculation not one which is internally compounded.
So, that’s a 12.41% annual increase over 20 years, which is a sizeable return over that time period.
The comparison may not work well over longer time periods. We are comparing “averages” to “averages”. The housing stock is not the same, it’s being gradually updated.
Brian Madigan LL.B., Broker