There’s a new trend sweeping the nation, something we’re all secretly indulging in and speculating about: what our houses are worth.
According to a Statistics Canada report released last month, the net worth of Canadians rose by $770 billion in the first three months of 2021 with the net worth of households with a major income earner aged 55 or older being over $1.1 million dollars.
The vast majority of this is from house values. At the end of March 2021, the average price of a Canadian home was over $700,000, and that was before the housing market started going crazy.
You don’t have to look further than the crop of SOLD signs on lawns and online to see the frenzy.
We’ve had two friends who have sold their houses in the past few months. Each had more than 50 showings in a week, received more than a dozen offers and had people write letters why they should get the house. In both cases, their houses sold for 20% over the asking price. It’s downright crazy.
For those of us who grew up in the 80’s and 90’s singing along to The Barenaked Ladies, “If I had a million dollars”, it’s a bit surreal. In 1992, when the song was released, the average house price was $149,864. Since 1985, prices have risen by 5.65% annualized over the past 30 years.
If you look at our parents’ generation it must be unfathomable. My parents bought their tiny two-bedroom, one bathroom bungalow in Port Credit, a now bustling suburb of Toronto for $11,000 in 1954. They couldn’t afford the much bigger and nicer three bedroom house up the street for the extra $2,000. It’s still there today, nestled between the mansions that line the street now.
Yes, things have definitely changed since the Ladies sang, “If I had a million dollars…I’d be rich.” A million dollars probably wouldn’t get you a shack in downtown Toronto or Vancouver.
But it is fun dreaming of what we could sell our houses for until you realize you need to buy somewhere else.
Ed. Note: If you are thinking of selling and getting out of dodge, check out this Moneysense magazine article featuring the top ten best places to buy in Canada where you’ll get good value for your money. Spoiler alert: beautiful Bancroft, Ontario is #1. Here’s a picture of our house–while it may not be worth a million dollars yet, we’re happy with our million dollar view.