Condos are now the preferred first step to homeownership.
Condominiums now represent one in every three homes sold in the Greater Toronto Area; close to one in every four homes sold in Ottawa and Hamilton-Burlington; and almost one in every five homes sold in London, Kitchener-Waterloo, and Collingwood, according to the 2010 RE/MAX Condominium Report that identified trends in eight Ontario markets and one in Nova Scotia.
“As one of few affordable housing options available to first-time buyers, the concept is poised for dramatic growth in years to come,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada.
“The lifestyle has also gained a foothold with younger, hipper audiences, as the definition of homeownership evolves with the changing demographic. Dreams of the small home with a white picket fence are being replaced by the funky loft apartment in close proximity to shops, restaurants, and entertainment.”
The trend has translated into a solid upswing in unit sales activity, with 78 per cent of markets posting an increase in year-to-date sales (January – September 2010 vs. 2009)—with percentage gains outperforming overall residential sales in most markets examined.
While the greatest activity continues to occur in the lower price points-under $200,000 in areas like Ottawa, Barrie, and London and under $300,000 in Toronto and Collingwood—luxury product is also attracting more affluent empty-nesters and retirees to the maintenance-free lifestyle.
Condominium sales in the GTA over the $1,000,000 price point have seen a 49 per cent increase year-over-year, while condos priced in excess of $450,000 in Ottawa have seen sales jump 72 per cent compared to the same period in 2009.
"Unlike 1989, when a flood of new condominium listings wreaked havoc on the market, these purchasers are in for the long haul," says Polzler.
"Leverage is not a factor, with most paying cash for their units. If they can’t sell their apartments, they’re more than prepared to rent them out."
Source: RE/MAX Ontario-Atlantic Canada
Condominiums now represent one in every three homes sold in the Greater Toronto Area; close to one in every four homes sold in Ottawa and Hamilton-Burlington; and almost one in every five homes sold in London, Kitchener-Waterloo, and Collingwood, according to the 2010 RE/MAX Condominium Report that identified trends in eight Ontario markets and one in Nova Scotia.
“As one of few affordable housing options available to first-time buyers, the concept is poised for dramatic growth in years to come,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada.
“The lifestyle has also gained a foothold with younger, hipper audiences, as the definition of homeownership evolves with the changing demographic. Dreams of the small home with a white picket fence are being replaced by the funky loft apartment in close proximity to shops, restaurants, and entertainment.”
The trend has translated into a solid upswing in unit sales activity, with 78 per cent of markets posting an increase in year-to-date sales (January – September 2010 vs. 2009)—with percentage gains outperforming overall residential sales in most markets examined.
While the greatest activity continues to occur in the lower price points-under $200,000 in areas like Ottawa, Barrie, and London and under $300,000 in Toronto and Collingwood—luxury product is also attracting more affluent empty-nesters and retirees to the maintenance-free lifestyle.
Condominium sales in the GTA over the $1,000,000 price point have seen a 49 per cent increase year-over-year, while condos priced in excess of $450,000 in Ottawa have seen sales jump 72 per cent compared to the same period in 2009.
"Unlike 1989, when a flood of new condominium listings wreaked havoc on the market, these purchasers are in for the long haul," says Polzler.
"Leverage is not a factor, with most paying cash for their units. If they can’t sell their apartments, they’re more than prepared to rent them out."
Source: RE/MAX Ontario-Atlantic Canada
