Housing Evolution Driving Canadian Real Estate Price Appreciation

Housing Evolution Driving Real Esate Price Appreciation Billions spent in new construction, renovation, and infill over the past decade have contributed to a serious upswing in the calibre of Canada’s housing stock, propping up residential average price in the country’s major centres, according to a report released today by RE/MAX.

Since 2000, the value of a Canadian home has doubled, rising from $163,951 to $339,030 in 2010. Nowhere has the upswing been better captured than in both the value of residential building permits issued nationally between 2000 and 2010—at $340 billion—and the estimated $450 billion spent in renovation. The impact of these two forces alone has fueled the Canadian residential real estate market – as well as the construction industry—for more than 10 years. Click here to view the full article.

 

The stellar performance of the Canadian real estate market since the mid 1990′s has been attributed to many factors, including in particular the dramatic reduction in mortgage rates over the past several years. The impact of the overall improvement in quality of the Canadian housing stock has not been appreciated as a major contributor, however. The pace of renovation and new construction is likely to continue largely unabated for years to come and this should help to keep our real estate market strong through the years of global debt deleveraging to come.