London is one of the most stable real estate markets in Canada.
ReMax has completed a national study of home prices increases across Canada during the past ten years. Surveying 18 major centres across Canada they found that the London St. Thomas area had the lowest average price increase from year to year. The national average was an average annual increase of 6.82% while London’s average was 4.82%.
Not great news if you are real estate speculator and there will be some pundits claiming that real estate is not a good investment, but let’s look at what 4.82% per year means.
According to Remax The average price in our area was $135,857 in 2000 and $228,114 in 2010. That’s a gain of $92,257, while putting a roof over your head. If you are on the receiving end, compound interest is your friend
Admittedly there are costs to home ownership and the net gain may be lower but home ownership still can represent a good, safe, long term return on your money
Below shows how London and area compared to other Ontario cities