Condominiums reported the fastest price appreciation amongst all housing types last year, but it seems their dominance could soon end as millennial homebuyers start to shift their preferences to established homes, according to a market survey forecast by Royal LePage.
Over the past year, the median price of condos rose by 3.3% to $487,525. The Greater Toronto Area witnessed the most significant growth at 7.8%, followed by the Greater Montreal Area's 4.4%.
However, the national price gains were offset by the annual decline in Greater Vancouver, where the median price of a condo decreased by 3.4%.
While the average condo price in the Greater Toronto Area is expected to increase by 6% this year to $600,000, detached homes are quickly catching up — an average two-bedroom home is expected to post price gains of as much as 4.5%.
Royal LePage CEO Phil Soper said millennials are starting to look for bigger spaces for their growing families.
"With kids in hand and dog on leash, these parents are now eyeing the suburbs that their baby boomer parents so coveted. We predict that the period of disproportionately higher price appreciation in the condo segment is drawing to a close as interest in detached homes is reborn," he said.