Buying real estate is widely considered to be one of the safest and most effective ways to grow your money.
It’s true that many property owners likely saw immense returns over the course of the booming sellers’ conditions that defined Canadian housing markets in 2016 and early 2017. However, as the Canadian Real Estate Association has reported sales and prices fell 12.6% and 2.9% last month, does the same still hold true in today’s softer market?
To find out, we calculated the change in value of an average home, assessing gains and losses in the key housing market over the course of 2018 – the Greater Toronto Area. Those findings were then compared to returns across the following three investment types:
- A high-interest savings account (+1.1% y-o-y)
- The S&P / TSX Composite Index (-11.6% y-o-y)
- The S&P Canada Aggregate Bond Index (+1.5% y-o-y)
Check out how Toronto’s housing market compared to other investments over the course of 2018 in the infographic below: