Now that the Chinese Lunar calendar has turned to The Year of the Dog, in terms of Canadian home prices, it looks like we will be repeating “The Year of the Condo” again. Why do condo sales continue to make headlines? The answer may surprise you.
As the government tries to create balance and order with the introduction of several programs designed to cool the real estate market, a new trend has emerged – and it’s one that disputes the theory that single-family homes always appreciate faster than condos.
According to several recent resale statistics, the average price of a condo in major cities such as Vancouver and Toronto continues to rise exponentially, in most cases outpacing all property types, including detached homes. That’s right – condominium prices are now appreciating at a faster pace than detached homes in key urban centres across the country as demand continues to outpace supply.
Resale statistics released in Vancouver, for example, saw the average price of a highrise condo jump by 27.4 per cent in 2017. Comparatively, the average Vancouver detached home rose only 8.3 per cent during that same time – that is a shocking statistic to some Canadians who have traditionally always valued owning property over an apartment-style home.
In Toronto, the story is much the same – condominiums are appreciating at a faster pace than detached homes year-over-year. The Toronto Real Estate Board reported that the average price of a resale condo in the downtown core of Toronto saw a price increase of 19.6 per cent in 2017, and last month many condos sold at well above asking price, as supply has decreased sharply. By comparison, last month detached housing prices in Toronto fell by almost four per cent.
This year, it won’t be condo sales that make the news. It will be affordability and a lack of supply that will become readily apparent as we head into the spring market. If you’re waiting for prices to drop, you may end up in the dog house.
As a buyer, do your research, and decide what’s right for you financially and emotionally. A little good fortune and luck helps, but making an educated buying decision is always the most important step when it comes to buying real estate.