Toronto Market Increases 66.82% Annually over 50 Years
Real Estate Performance over Fifty Years (1967 to 2017)
How did real restate perform over the last fifty years?
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 1966 was $21,360. That’s the same as the first of January 1967 number.
The December closing number for 2017 was $735,021.
Let’s start out at the beginning of 1977 and compare that to now. We saw a $670,462 increase or 3,341.11 % over 600 months, or 0.0557 % per month which is 66.82% annually. That’s the straight line percentage calculation not one which is internally compounded.
So, that’s a 66.82% annual increase over 50 years, which is a sizeable return over that time period.
Fifty years of real estate performance is difficult to believe.
However, consider compounding, inflation, value of the dollar and interest rates over that same period of time.
This is as far back as we can go. The Toronto Real Estate Board did not maintain annual statistics for comparative purposes earlier than this.
Brian Madigan LL.B., Broker