How much will your home be worth in the future?

dollar sign“House prices always go up in the long run”.

It used to be said that the only exceptions to that rule was if your house was in a one-industry town and the industry closed down or if it was hit by a nuclear bomb. However both Elliot Lake and Hiroshima are doing quiet well, thank you very much. (I guess there is hope for Windsor.)

I was talking with my dad the other day. Naturally I asked him about the houses we owned over the last 60 years and their values. He told me something we all already know; house prices and values always go up in the long run.

Mom and Dad bought their first house for $6000 and their current one for about $430,000. They remembered the buying and selling prices for all of their houses (seven so far), and the difference between the buying price and the selling price was always a gain.

It’s impossible to know how much you’ll make when you sell your house. But the past is often a good guide to the future so here’s a chart that may be useful.

house value

Sorry there is no Kitchener – Waterloo data on the chart. In KW, prices were averaging gains of roughly 6%/year over eight of the past ten years then they slowed last year and rose by 10% in the first half of this year.

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