We sold our house in September of 2007 for $241,000. At the time, I thought that was ridiculously high. How could a basic end unit townhouse be worth that much money? I figured we were getting out near the top of the market, but almost 3 years later I think it would sell now for close to $275,000.
The average house in Canada sold for $347,000 in May of 2010, compared to $319,000 in May of 2009.
Recent news and market reports say that the whole thing is about to come to a grinding halt, with outright declines in most markets. The Canadian Imperial Bank of Commerce says that home prices in Canada are overvalued by about 14%.
Interest rates have nowhere to go but up, and the new Ontario HST tax starting July 1st will increase a lot of transaction costs for buying a home.
Housing prices in Canada have been rising pretty consistantly since 1993, with a slight blip down during the U.S. subprime mortgage fiasco. They have now recovered and gone higher yet.
The Japanese housing bubble burst in 1993. Housing prices there have declined almost every year for the last 17 years. Not saying that will happen here, just saying that it could.
Despite the fact that we have missed out on some gains over the last 3 years, I am not missing being a home owner. And I most certainly wouldn't be buying one now!