A comparison of single-family home and condo prices spanning the past 20 years reveals the latter has kept pace with the former. This is despite the constant fear regarding the safety of condo investing, according to a new report from Royal LePage.
In the GTA, condo prices have increased by an average of 5.1 per cent year-over-year, as opposed to the 5.9 per cent average increase observed for single-family homes. Condo prices rise by 5.5 per cent per year in the greater Montreal area, as compared to 5.1 per cent for the average single family home.
A slighlty larger gap exists between Vancouver's condo and home indexes. The report indicates that the average price for condos is enjoying 4.5 per cent annual increase, while single-family homes are up by 5.7 per cent.
"While some divergence may be expected in the near-term," says economist Will Dunning, who composed the report, it is suggested that "condominiums will experience growth rates similar to single family homes over the long-term."
This information helps to repel some of the worries about an overabundance of condo inventory, particularly in some of the country's large urban centres. Additionally, the report may also deflect some of the concerns that condo investors will leave the market in 2014, with the hopes of skirting the major crash forecast by several economists.
