DID YOU KNOW???

Toronto Real Estate: Hot or Not?

Have you ever wondered how houses have stood up as an investment?

Well, here's your answer!

According to the Toronto Real Estate Board (TREB), crunching forty years of statistics  reveal a few surprises: (get ready!)

1,250% (can you believe it!?!)

Average resale house prices have increased a whopping 1,250 per cent since 1969 - about the same performance as the stock market, where the TSX (Toronto Stock Exchange) composite index rose 1,244 per cent.

2.5x

Both house prices and the TSX outstripped inflation - which stands at 484 per cent over the last 40 years - by 2.5 times.

Drop

Since the last price peak of $280,676 in 1989, the average price across Toronto fell 31 per cent, to a low of $192,406 in February 1996.

Lag

Since that peak, some areas have enjoyed gains of more than 100 per cent, but in 40 of 85 areas tracked by the Toronto Real Estate Board, prices have not kept pace with inflation.

Buy

Smart buyers head out in January when prices are usually lower, and have been consistently the lowest for the year in the last decade. Often, they're rewarded with prices lower than the previous December.

Sell

May is the highest month for house prices, followed by December. One notable exception was 1989; prices peaked in October.

Hot

Top 40-year gains: Bridle Path, Forest Hill, Annex/Yorkville
Top 20-year gains: Clarkson (Mississauga), the Beach, Riverdale
Top 10-year gains: South Riverdale, East York, the Beach

So what does all this tell us? Real Estate in Toronto is a wonderful investment! In addition to the above neighbourhoods, North York in general, Armour Heights, the Cricket Club, Bathurst Manor & Thornhill are amazing areas that stand the test of time. For more information on these amazing community neighbourhoods, please call Liz Gordon, Sutton Group Admiral Realty Inc., at (416) 739-7200, or email egordon@trebnet.com.

Source: Toronto Star