Let’s have a look at the last 10, in the GTA.
Here are the average sale prices as reported by TRREB for single family homes of all types in the GTA, including houses, townhouses and apartments starting at the beginning of 2018 until now:
As of 31 December each year:
YEAR PRICE %
2013 $520,398 10.2
2014 $556,602 9.87
2015 $609,110 9.07
2016 $730,472 6.27
2017 $735,021 7.17
2018 $750,180 8.03
2019 $838,662 10.09
2020 $932,297 8.45
2021 $1,157,861 6.38
2022 $1,051,216 -9.21%
What is the usual annual percentage return in real estate?
Well, we could go back to the Doomesday Book. That was the first tax roll. It was put together by William the Conqueror in 1066. A property which consisted of a large farm in Kent was valued at 30 lbs. Twenty years later in 1086, the same property was valued at 60 lbs. There had been no changes to the property. It doubled in twenty years. That’s an annual return of 5% per annum
Fast forward, over a thousand years to a busy area and sought after area, namely, the GTA, which should expect somewhat higher results.
So, these are the returns that we have seen over the last ten years.
If you started out in 2013, and purchased a property for the average price at that time, you would have made an annual return of 10.2%. That’s difficult to beat over that time period.
Brian Madigan LL.B., Broker