Understanding house prices

Mortgageman says the best time to buy a home is ALWAYS now! Yes there are ups and downs but in the long run the ups win!

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.
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.
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.

City
Price, 1990
Price, 2005
Total % increase, 1990–2005
Average % increase per year


Saint John
97,238
188,484
93.84%
6.26%
Halifax
78,041
119,718
53.40%
3.56%

Quebec City
81,462
141,485
73.68%
4.91%

Montreal
111,197
203,720
83.21%
5.55%

Ottawa
141,562
248,358
75.44%
5.03%

Toronto
254,890
336,176
31.89%
2.13%

Windsor
106,327
163,001
53.30%
3.55%

Greater Sudbury
108,596
134,440
23.80%
1.59%

Winnipeg
81,740
137,062
67.68%
4.51%

Saskatoon
76,008
144,787
90.49%
6.03%

Calgary
128,484
250,832
95.22%
6.35%

Vancouver
226,385
425,745
88.06%
5.87%


Source: Canadian Real Estate Association (MLS®)