Most working Canadians believe their home will grow more in value than their stock investments over the next 10 years, despite historical data that show otherwise, a new poll suggests.

The Decima Research poll – conducted on behalf of Investors Group – found 59 per cent of non-retired Canadians saying they expect their real estate assets will grow more in value than their investment portfolio over the next decade.

That’s despite evidence that Investors Group says show equity markets compare favourably to real estate as an investment.

Over the last 20 years, the S&P/TSX composite’s average annual return as of Sept. 30 is 9.35 per cent, the financial services company said in a release.

“Based on (Multiple Listing Service) statistics supplied by the Canadian Real Estate Association, the average annual increase in real estate assets in Canada over the last 20 years is 5.1 per cent.”

The poll results also indicate that Canadians have similar attitudes toward investing as they expressed this time last year, while demonstrating considerably more positive views than they held in the fall of 2002.

Some 31 per cent said the stock market will go up, while only nine per cent expect it to go down and 47 per cent said they think it will stay about the same.

However, “rising house values are making homeowners feel wealthier and that can make it more difficult to follow a disciplined savings and investment plan,” said Debbie Ammeter, vice-president of advanced financial planning for Investors Group.

She added that Canadians “should be aware that real estate markets are volatile. Even though investing in your home is a great idea, you still need a balanced and well-planned approach to saving for your long-term goals, such as retirement.”

When deciding how much money to put in their retirement savings plans, people indicated their most important competing financial obligations were: Reducing debt, 36 per cent; purchasing or renovating the home, 33 per cent; funding family expenses, 22 per cent; buying a car, 20 per cent; and buying recreational property, 12 per cent.