The State of Canadian Home Prices in 2012

Canadian home prices beyond inflationI read an interesting article today by the Globe and Mail’s personal finance columnist Rob Carrick. Carrick got his undergraduate degree in 1984 and he was able to get a good-paying job and buy a home without incurring thousands upon thousands of dollars in debt.

Today’s generation of graduates are not only earning less money, they are also facing Canadian home prices that are so astronomical, that the idea of buying a home is a mere fantasy.

Take a look at what Canadian home prices would’ve been if they rose by inflation rates as compared to what the actual average price of a home is today.

Region

Average Canadian Home Price in 1984

Average Canadian Home Price Today If Homes Rose by Inflation  Since 1984

Actual Canadian Home Average Price Today

Canada

$76,214 $154,587 $369,677

Vancouver

$116,444 $236,187 $761,742

Calgary

$94,154 $190,976 $409,750

Toronto

$96,078 $194,878 $504,117

Montreal

$66,116 $134,105 $318,400

Halifax-Dartmouth

$71,950 $145,939 $272,599

It’s pretty obvious that Canadian home prices have way more than doubled since 1984 and perhaps this might help us better understand why students are up in arms over what awaits them in the future.

Source: Canadian Real Estate Association, Bank of Canada inflation calculator

Read more about this at CTV.ca.

 

 

 

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