Tuesday, 1 April 2014

Do Real Home Prices Have a Substantial Long-Term Uptrend?

Most of the housing reports that downplay the risk of a housing bubble in Canada tend to base their analysis on just a few decades of housing data. But if you are a homeowner who plans to occupy a dwelling for the next 30 to 40 years, then such data may not provide a definite answer on how real estate prices actually behave in the long run.

If we look at the long term housing data (100 years +) then something unexpected emerges - in the long term, home prices tend to be rather flat.

Below are long term real housing price indexes for Australia, Norway, United States and Canada.
Australian long term property prices:

 Chart by Philip Soos

Norwegian housing bubble:

And here's a world famous housing bubble that occured in the US:

 Chart by Jason Kirby

The chart below shows a long term housing index for Canada. Home prices in Canada behaved just like the US until the late '80s.

 Chart by Jason Kirby

I don't know about you, but to me the graph above suggests that Canada has a housing bubble.



The information presented on this website is purely for entertainment purposes and should not be considered as an investment advice or any kind of advice at all. Statistics presented on this site are not guaranteed to be accurate, and there could be errors in the information presented on this site. However authors do try to present information as accurately as possible. The opinions of the authors and commentators are just that, opinions! Please always make up your own mind about things in life, and never take things for granted, including on this site. Hope you have a great day!

Contact Me

You can reach the authors of this site by emailing to: torontocondobubble (at) gmail.com Authors of this website try to cite all their information sources to the best of their abilities. If for some reason you believe we infringed on your copyright, please email us and we will fix it as soon as possible!

Privacy Policy

Please familiarize yourself with our Privacy Policy