Toronto Market Increases 8.55% Annually over 25 Years
Real Estate Performance over Twenty Five Years (1992 to 2017)
How did real restate perform over the last twenty five 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 1991 was $234,314. That’s the same as the first of January 1992 number.
The December closing number for 2017 was $735,021.
Let’s start out at the beginning of 1992 and compare that to now. We saw a $500,707 increase or 213.69% over 300 months, or 0.0071% per month which is 8.55% annually. That’s the straight line percentage calculation not one which is internally compounded.
So, that’s an 8.55% annual increase over 25 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.
Also, remember, the CPI, inflation and the value of the dollar. This is just a simple “math exercise”.
Brian Madigan LL.B., Broker