If you weigh the value of a house versus a condo, which is a better investment?
Ten years ago the first of the baby boomers had not yet reached retirement age (65). How many of us thought that condo demand would increase and drive up prices as the baby boomers started to retire and downsize into a condo? With this projected increase in demand, you would think that the smart move 10 years ago would have been to invest in condos. The numbers, however, paint a different picture.
According to the Realtors Association of Edmonton, the average price of a condo in the Edmonton area in 2008 was $254,372. In January of 2016 the average price of a condo was $246,727. That represents a 3 per cent drop in almost 10 years. Looking at the numbers from 2013, the average sale price was $215,981, so condo values have recovered since then.
In comparison, the average price of a single-family home in the capital region in 2008 was $375,714. Today the average price is $416,85, which is an increase of 11 per cent. That’s a difference of 14 per cent in the value of single-family detached homes versus condos. If you purchased a single-family detached home for $400,000 in 2008 then the home should be worth about $444,000 today, provided it’s in similar condition. A condo purchased for $400,000 in 2008 would be worth about $388,000 today.
Article from Edmonton Journal by Dennis Faulkner.
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