The report said the average residential price in the city grew from $176,305 in 2000 to $398,764 last year – an annual compounded rate of return of 7.7 per cent. That bested the national average of 6.82 per cent. Across Canada, Re/Max, in its Housing Barometer report, said residential average prices went from $164,091 in 2000 to $339,030 in 2010.
Yearly returns of 7.7% on homes? Calgarians are BALLIN’
February 8, 2011
So you know how GICs pay about 1% return right now? And, if you take a peek at the annualized 15-year return for the S&P 500, it sits 6.58% for 2010. And even though stocks are riskier than Canadian real estate– Calgarians earned a higher return on their home investment than a lot of fat cat hedge fund managers. Word.
Now, I must qualify this by saying that this is not in line with the normal state of affairs– the stock market took an unprecedented nosedive in 2008/2009. But come on, let the little guy have this one.
According to the Calgary Herald:
Wait, so that means that Canadian real estate as a whole was a better place to park your cash than in the S&P 500? Damn– that’s a burn.
Attention Gordon Gecko, I have a tip for you– take a look at Calgary real estate.