- the source for market opinions


February 8, 2022 | Homeowners Expect to Keep Winning

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

Average Canadian home prices have increased 40% since the Pandemic began.  For a bit of context, that’s the equivalent of about eight years of the long-term average price appreciation in just two.

Still, as unusual as housing gains have been, 64% of Canadians recently surveyed expect the value of homes in their neighbourhood to increase further over the next six months.  The historical average on this question is about 40%.  Just 5.6% of respondents expect prices to fall, the lowest on record.  See:  Canadians deepen faith in red-hot housing while rate hikes loom.

The problem with cyclically-blind expectations is that they’re inherently unreasonable and end up disappointing, eventually.  In the meantime, financial plans get based on misinformed assumptions that pile borrowing, spending and capital allocation decisions onto flawed foundations.  A reliable recipe for frustration and loss.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

February 8th, 2022

Posted In: Juggling Dynamite

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.