Housing prices fluctuate from year to year. Inflation, interest rates and the general economic climate all play a role. If demand for homes is high, interest rates are attractive and properties are selling quickly, then average housing prices will rise. If the market softens and homes take longer to sell, then market values will go down.
No one can see into the future and predict trends. But over the past several years, the average cost of a single-family home in Canada has risen:
2008 - $304,000
2006 - $270,000
2001 - $190,000
1995 - $160,000
1992 - $151,000
Be especially aware of market conditions if you plan to own your home for a short time (1-3 years). If the prices dip and you have to sell before they recover, you may lose money on your investment.
The figures above are national averages. As you can see from these recent survey results, average house prices vary widely depending on where you plan to live and the type of dwelling.
|Average Housing Prices|
|Region||Detached Bungalow||Standard Two Storey||Standard Condo|
Source: RBC Royal Bank Housing Affordability Index, November 2010
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