Buying a Home 0r Selling?

Understanding house prices or Investment Appreciation


A home may be one of the biggest investments you ever make. Saving up a down payment is just the first step. Find out more.

What factors affect the value of a home?

  • Location: Real estate people always say “Location, location, location.” That’s because the area you live in will be the biggest factor affecting your home’s price. It’s smart to buy a home where housing prices are likely to increase. Also, the people who may buy your home from you one day may be willing to pay more for a home that is close to schools, sports centres, stores, services, and so on. Keep that in mind as you look.
  • The condition of the home and the property it is on: Does the home need a lot of repairs? How is the roof, plumbing, and electrical wiring? A home in good repair may be worth more. Also, the condition of the outside of the home, the lawn, gardens, driveway, and trees will all affect the value of a home. These are the first things that buyers see, and are together known as curb appeal.
  • Renovations and updates: An older home might need some work to keep it safe, modern, and comfortable. If you are buying at a home that has had some renovations, check the quality. When you do work on a home you own, do it as well as you can. Poor work can lower the value.
  • The economy: There are some things you can’t control that affect house prices, like interest rates. Higher interest rates mean it costs more for a mortgage, so fewer people buy homes. When that happens, the prices of homes can fall. Lower interest rates, on the other hand, can boost buying and drive prices up. House prices often go up for a while, and then come down a bit. Try to find out as much as you can about how prices are changing, or may change, when deciding to buy or sell a home. Often there will be stories in the paper about housing prices.


You can find the multiplexes/investment listings on webs sites as under  

How much is my home worth today?

If you’re considering buying a home, or you just bought one, you know how much it’s worth. But if you’ve owned your home for a while, its value has probably changed. Here’s how you can find out how much it’s worth now:

  • Call a real estate agent: Ask them for an estimate of your home’s value. You may be able to get an agent to do this for free, because they hope to get your business in the future. for free market evaluation*

  • Ask an appraiser: Your bank or a real estate agent should know a number of appraisers. Banks use them to estimate house values before they approve mortgages. You can also look in the yellow pages. An appraiser will charge a fee for the service.
  • Check to see what other homes in your area have sold for recently: Compare your home with similar ones that have sold. Unless you keep up with what’s happening in your area, this information may be hard to get. Ask your real estate agent if you can’t find it yourself.

How much will my home be worth in the future?

To estimate a home’s future value, you will have to do some informed guessing. Start with finding out what has happened to prices in your location over several years.

This chart shows how house and condo prices in several Canadian cities changed from 1990 to 2010. Note that real estate prices in Toronto went down a lot between 1990 and 1996 and took a number of years to climb back. Still, the average growth for these cities since 1990 was almost 8 per cent, almost double the historical average of 5 per cent a year.

City Price ($), 1990 Price($), 2005 Price($), 2010 Total% increase, 1990-2010 Average % increase per year
Halifax 97,238 188,484 242,000 148.87 7.44
St. John 78,041 119,718 174,000 122.96 6.15
Quebec City 81,462 141,485 238,500 192.77 9.64
Montreal 111,197 203,720 284,000 155.4 7.77
Ottawa 141,562 248,358 324,000 128.87 6.44
Toronto 254,890 336,176 409,000 60.46 3.02
Windsor 106,327 163,001 182,000 71.17 3.56
Greater Sudbury 108,596 134,440 Data n/a Data n/a Data n/a
Winnipeg 81,740 137,062 238,000 191.17 9.56
Saskatoon 76,008 144,787 294,500 287.46 14.37
Calgary 128,484 250,832 382,000 197.31 9.87
Vancouver 226,385 425,745 638,000 181.82 9.09

Source: Canadian Real Estate Association (MLS®)

Remember: There’s no guarantee what housing prices will do

Location and the condition of the home are both important factors, as is the economy as a whole.

Learn more…

The Canadian Real Estate Association provides current house prices in major Canadian cities.

There are also some good calculators on the Internet to help you estimate the future value of your home, including:

Bank of Canada’s Investment Calculator  

(The comments contained on this site are for information purposes only and do not constitute legal advice.)

If you have any questions/suggestion or require more information, please do not hesitate to contact me for buying or selling and also I will be happy to assist you negotiating your investment needs.You can find the multiplexes/investment listings on webs sites as under 


Vijay Gandhi,
Sales Representative- REALTOR®,
RE/MAX Dynasty Realty Inc. Brokerage*
C: 647. 267. 6338 (Direct-Leave message or text)
P: 416.335.4335 | 905.471-0002 (page me-Have me)
F: 905.471.7441
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Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!