If this is so, why did someone suggest bigger % drops during recessions? This could only mean a bigger % of detached owners are more leveraged? I mean if demand is higher for these, then shouldn't it not lead the drops? Something tells me this time could be different with many too overleveraged.
Why is it usually that price appreciation for detached > semi > town > condo?
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- Mar 25th, 2016 5:10 pm
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- alanbrenton [OP]
- Deal Expert
- Apr 21, 2004
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- Mike15
- Deal Fanatic
- Nov 24, 2013
- 6479 posts
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- Kingston, ON
It's not the condo->house aspect, it's buying a "starter" and then moving up. Nature of property is irrelevant.
By buying a starter instead of saving up for what you really want first, you're using up your first time land transfer tax exemption, and you're paying a commission on sale (whether it's 5%, 3.5%, ComFree, whatever). You balance this against potential property appreciation you'd be missing out on while waiting.
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