An estimated $450 billion has been spent on home renovations from 2000 to 2010, said the report, along with $340 billion in residential permits. That’s helped the average value of a Canadian home double from $163,951 in 2000 to $339,030 in 2010, according to Re/Max.
The value of land gains during that same period was not detailed in the report, however Re/Max noted infill has helped redefine Canadian neighbourhoods where the value of existing structures has lagged the pace of escalating land values.
“While a number of external variables were also behind the exceptional gains, revitalization – amid an aging housing stock – and new construction, are largely underestimated factors supporting Canadian housing values,” said Michael Polzler, executive vice president with Re/Max Ontario-Atlantic Canada.
He said there will be an increasing amount spent on revitalization of the housing stock in years to come, continuing to put upward pressure on values.
“City planners, builders, developers, and homeowners have only just begun,” said Polzler.
The report noted the growth of new condos in major cities as part of that building trend, as homebuyers increasing choose that option over a house.
“Running the gamut from entry-level units to upscale, luxury suites, condominiums have gained widespread appeal with aging boomers, looking for lifestyle and low maintenance; young professionals, attracted to trend locales; and first-time buyers looking to get their foot in the door to homeownership,” said Polzler.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate