Housing Prices Predicted to Double By 2026

According to the CIBC world markets, the prediction is that Canadian housing prices will double within the next twenty years. By 2026, your house will be worth twice what you paid for it today.... or last year.

They seem to think that fears of a decline from first time buyers, downsizing and the liquidation of homes by seniors are exaggerated, but believe medium growth and medium immigration will help to stabilize the housing market. As the baby boomers move into the next stages of life, they account

"...for only 12 per cent of total housing demand."

Despite the influx of "extra housing" that the market will see, of the 250K extra 's, only 12,500 extra homes per year will be available during that time period. They did a study on population growth between the years 1987 to 2006 and used it as a benchmark for the growth pattern between 2007 to 2026. The prediction is that prices will rise by two percent every year for the next 19 years. Of course this is good news for the lending institutions, but what will it mean for the population in general? Meanwhile in another related article here, it is noted that housing prices are already on the rise with Regina leading the way, and that the contractors' selling prices have risen by as much as 10%. Edmonton's prices, however, were up by 42.5% for a new home over last year. Yikes! I wonder how this relates to what is happening with the housing market in the USA as foreclosures seem to be a hot topic right now. Will Canada go through something similar or are we to "just believe" what the banks are telling us and hope for the increase, especially for current owners? Would you want to jump into the market knowing/hoping this will all pan out and enjoy the benefits of this next growth period? Housing is expensive enough and I guess if you don't get in soon, you will not benefit.