bad news to people who are wanting a home.
Home prices in Canada will likely double in the next 20 years despite predictions that population pressures will limit their growth, says CIBC World Markets. A projected decline of 167,000 in the number of first-time buyers between 2007 and 2026 is "marginal, at best,'' CIBC economist Benjamin Tal said in a release.[/p] "Despite downward pressure from demographic forces, on average, we expect house prices in Canada to double in the next 20 years,'' said Tal.[/p] "Fears of a decline resulting from the downsizing and increased liquidations of houses by seniors and the falling number of first time buyers are highly exaggerated.''[/p] In a report released Wednesday, the bank compared population growth between two cycles of housing prices, from 1987 to 2006 and from 2007 to 2026, with medium-growth, medium-immigration projections from Statistics Canada as a benchmark.[/p] A decline of 2.5 million buyers is projected for the 45 to 54 age group, as baby boomers move to the next age bracket, but that will not severely affect prices, Tal said, as the group accounts for only 12 per cent of total housing demand.[/p] "We estimate that in the coming 20 years, the Canadian housing market will face extra supply of roughly 250,000 houses,'' Tal said.[/p] "While at first glance this appears to be a large number, it means an average extra supply of only 12,500 homes a year during that period.''[/p] The housing market is expected to fluctuate in the next 20 years, but the bank predicts average real house prices will mirror the performance of the past two decades.[/p]
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Wtf is this about 20 years, it's done that in the last 5!
that only average to about 3.6% rise in property value a year..........I rather rent
Housing prices fluctuate all the time.
I'm with 49er on this one, renting is better and at often, cheaper.
Its jumped insanely in the last while. I remember when I was in Gr12 seeing a value for my parents place.. 410. The house across the way with a smaller lot went for 950 a month ago.
I think it will dip for a while after 2010.. alot of people seem to be buying with the intent to sell it seems. First time buyers are having a hell of a time.
Alot of my friends that are buying places arent buying in Van, Bby, NWest, Coq.. they are buying in Delta, right across the Port Mann.
I'd rather rent too....apart from anything else it makes future relocation relatively less prone to hassle.
Not me. I have no interest in lining someone elses pockets. On the other hand, I'm less concerned with the value of my property than I am in having somewhere that I may live payment free when I'm older. Somewhere I'm free to do what I want with my home without permission.
I get a chuckle out of people who say..."You should sell ! Do you know how much your property is worth?" It's all relative. So I sell.....I get a lot of money.....then I have the option to choose to live somewhere else for a lot of money.
I am with P.C. on this one. I love having my own house. I love the freedom to paint, change the flooring, tile the fireplace. This year I am tearing down my garage and building a new one. My house is old and has been taken care of, but the garage was neglected (tsk tsk!).
I beat the big house increases mind you. I agree, it would almost be better to rent these days than try to start out and buy an avereage house of $450,000 (or whatever it is?). These 40 year mortgages the banks are offering are a joke!
The problem with renting in my neck of the woods, there are no future rental suites being planned, so rent is climbing out of control and there is no end in sight. Parts of Vancouver at least have rent control of some kind.
As for P.C.'s property, what benefit would it be for you to sell a beautiful spot so close to the ocean? To me, that would be priceless! Good for you sister!
20 years is a long time. inflation?
Yeah, it is a long time for sure.
That is why I see these banks offering 40 year mortgages?? You will pay for the house a few times over.
I guess there is no easy answer?
The other day I came across an article somewhere or other that told me that the price of British houses was rising by about $130 per day.
Hey, isn't that greycat's avatar? wtf?
P.C. lives close to the ocean? NO WAY would I sell that house then.