Average Canadian property prices will rise annually by 4% over the next 25 years, according to a recent report by TD Economics.

“There is no question that the recent dramatic price growth in Vancouver, Calgary and Edmonton is unsustainable, and this poses risks in the near-term,” says Craig Alexander of TD Bank Financial Group. “Nevertheless, over the long haul, property values in these urban centres should do well, but the average annual price increase should be at a mid-single digit rate.”
Alexander adds: “Given how important home ownership is to Canadas financial well-being, the future value of a home should be included in the financial plans of Canadians. The assumption for future price growth should be conservative to ensure that a plan’s goals are realistic and achievable.”