The dominance of the condo market in terms of price growth could soon end as millennials start to shift their preferences to established homes, according to a market survey forecast by Royal LePage.
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%
Millennials are starting to go after detached homes in order to accommodate their growing families, said Royal LePage CEO Phil Soper.
The resulting demand for detached homes will put upward pressure on the values of detached homes. However, condos will remain an option for homebuyers with limited options in terms of affordability.
"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," Soper said.
