Canadian Real Estate vs Other Investments in 2017

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They say home is where the heart is – but while you can’t put a price on the emotional significance of a family dwelling, for many Canadians homeownership is likely the largest investment they’ll ever make.

When it comes to timing the market, the sage advice is to let your individual financial and lifestyle situation govern your home purchase or selling decision, rather than seeking pure returns – but it’s only natural for homeowners to want to make the most from their money.

So, after a tumultuous year of real estate policy reform, new taxes, and borrowing rules, how did real estate fare as an investment in 2017? To find out, Zoocasa compared the year-over-year January – December 2017 performance and average home price in Canada’s three largest markets – Toronto, Vancouver, and Calgary – to the performance of some of the most popular investment vehicles:

The S&P / TSX Composite Index
The S&P Canada Aggregate Bond Index
A high-interest savings account

As it turns out, it certainly paid to be a Vancouver homeowner, with the average home seeing a 10.7-per-cent return in value. Calgary homeowners, however, absorbed an 8.5-per-cent loss, while Toronto homeowners’ returns were relatively flat at 0.6 per cent – and outperformed by your average high-interest savings account.

Check out the investment returns comparison in the infographic below: