Both first-time buyers and baby boomers are increasingly looking to purchase condos in Canada’s major cities, according to a report recently released by the Bank of Montreal (BMO).

“For many first-time buyers, condos represent an affordable stepping stone into the housing market,” says BMO mortgage expert, Frances Hinojosa. “On the other side of the spectrum, many in the baby boomer demographic may be looking to downsize from the family home, leading some to consider the condo market as well.”

Conducted by Pollara, the BMO Housing Confidence Report examined intentions to buy property in the next five years among homeowners in four Canadian municipalities: Toronto, Calgary, Vancouver and Montreal. It revealed that more homeowners in Toronto and Calgary are planning to purchase a condo by 2018, while buyers in Montreal and Vancouver are reconsidering the prospects of highrise living.

Highlights of the report include:

• One-third of prospective buyers in Toronto plan to purchase a condo in the next five years, up 11 points from fall 2012.
• Intent to buy a condo in Vancouver has dipped by five points, from 33 per cent in fall 2012, to 28 per cent.
• Prospects for condos among home buyers in Calgary has risen eight points from fall 2012 (33 per cent versus 25 per cent), while intent to buy a traditional home has dropped from 71 per cent in fall 2012, to 58 per cent.
• Twenty-four per cent of buyers in Montreal will be opting for condo living, down three points. However, intent to buy a house has risen sharply by 16 points, from 46 per cent in fall 2012, to 62 per cent.

The report also revealed prospective buyers 50 years old and over are more likely to be eyeing a condo for their next purchase than those under the age of 50 (30 per cent versus 17 per cent).

“Condos remain an affordable alternative to the pricey detached market in some major cities,” says Sal Guatieri, a senior economist with BMO Capital Markets.