According to a new study, the average price for a Canadian home appreciated 264 per cent since 1981. Therefore, If you bought a house 25 years ago and have stayed put since, you made a wise investment.

The average price of a home in Canada rose 5.3 per cent annually on a compounded basis over the 25-year period studied, rising from $76,021 in 1981 to an estimated $277,000 in 2006. On a non-compounded basis, prices rose 11 per cent annually.

Average price for a residence in 2006:

Canada $276,824

Vancouver $509,876

Victoria $400,000

Toronto $351,941

Calgary $346,673

Ottawa $257,481

Edmonton $250,915

Montreal $215,659

Saskatoon $160,577

Regina $131, 851

Price appreciation topped 240 per cent in seven Canadian cities, including Montreal with a tremendous 292 per cent growth in real estate pricing.

There are several factors that likely contributed to the gradual rise in housing values in Canada:

Number one is a 25 per cent increase in Canada's population over the period studied. The greater the population, the higher the demand in housing.

The second underlying factor is the greater economic diversity in many regions of Canada. This has increased housing demand and therefore pushed up prices.

Immigration has also been a powerful driver behind housing demand.

No matter where you live, you're paying for your lodging either way so it makes sense to have that as a primary investment strategy. Everybody has to live somewhere, and because you can't raise your family in a mutual fund, there's always going to be a high demand for housing and real estate.

Canadians who poured their savings into a house 25 years ago are getting a very solid return on their investment. They saw home ownership as a logical, long-term investment and they were right.

Housing values will continue to climb over the coming year and in the foreseeable future. Therefore, it is a wise decision for all Canadians to buy now and reap the rewards later in life.