downward pressure
Canadian Average Home Prices Will Double? In only 20 years! REALLY?
By Greg - Posted on June 6th, 2007
I love the spin given the widely quoted recent study from CIBC on real estate prices doubling in the next 20 years in Canada.
Excuse me, but real estate prices in Victoria just tripled in the past 6 years. If you factor in inflation, saying prices will double in the next 20 years does not show a lot of faith in residential real estate as an "investment". After all, 3.5% gains compounded for 20 years will lead to a doubling in value. The same study makes the very large assumption that inflation will only run at 2% over the next 20 years, due to the forces of globalization - I guess that makes 3.5% returns "good".
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