Lowrise home prices slow, condo prices to climb

By Debbie Cosic
March 06, 2018

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.

About Debbie Cosic

Debbie Cosic, CEO and founder of In2ition Realty, has worked in all facets of the real estate industry for over 25 years. She has sold and overseen the sales of more than $15 billion worth of real estate. With Debbie at its helm, In2ition has become one of the fastest-growing and most innovative new home and condo sales companies. In2ition has received numerous awards from the Building Industry & Land Development and the National Association of Home Builders.

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