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Housing Prices Over The Last 25 Years

July 15, 2022

Housing Prices

There is one important question on every homeowner’s mind now in Canada. How much is my home worth, and how much has the value appreciated since I bought it?

This is mainly because the Canadian housing market has increased in value. In many provinces, buying an average detached home in a suburban area costs an estimated $1 million (Canadian).

History Lesson in Home Prices

It is relevant at this point to go back in history and see what has happened to home prices in the last 25 years – the tenure (amortization) of an average mortgage essentially. There is one graph that says it all. And one calculator explains it all – The CAGR (compound annual growth rate) calculator, available online for free.

If you examine this for a minute, you will see that the average home price was around $198,150 in 1996. The average home price in 2021 was around $1,095,419.

housing prices

Note: Toronto in 1998 included Brampton, Mississauga, Etobicoke, Scarborough, etc. It later became known as Toronto and Greater Toronto area and separated into cities.

If you want to know what your home is worth today, you can use the What’s My Home Worth tool on our web.

If you need a detailed home evaluation, please get in touch with us using the form below. One of our local agents will get in touch with you shortly.

Housing price history

This graphic image shows the nominal straight-line calculation of price growth over 25 years. Suppose you would like to know the real value. In that case, you will have to consider the carrying costs for the same period (i.e., the interest you pay on your mortgage, property taxes, maintenance, and repairs of your home) and the average annual headline inflation for the same period. This must be subtracted from the compounded annual growth rate.

Although you may feel that the 7.05 % compounded growth rate is on the lower side, please remember that the costs of the house diminish over the years of your ownership. So, when you finish paying your mortgage, the value of your home has risen exponentially. Therefore, it is never the wrong time to buy your house.