Eug, when I say the 'average' condo, that seems to mean finishes such as s/s appliances, granite countertops, hardwood flooring, etc which most buyers expect these days.
Granite countertops are a plus, but it seems to me they don't add huge value to the place. Same with hardwood floors. In fact, it seems to me the difference between good quality laminate and average engineered hardwood is
almost nil when you're talking resale pricing, and it's only a little bit better than broadloom.
To put it another way, even though you have granite counters and hardwood floors, you really shouldn't expect a price premium of more than a couple of percent if you're lucky. On an average 2-bedroom condo, my guess that is usually a 4-digit $ value. Not insignificant, but not a big deal either.
P.S. I've pulled some more numbers regarding overall Toronto home pricing, inflation, rates of return, etc:
Home price in 1953: $14424
Home price in 1995: $203028
Home price in 2007: $376236
Home price in 2008: $379347
Home price increases 1953-1995: 6.50% compounded annually
Home price increases 1995-2008: 4.93% compounded annually
Home price increases 1953-2008: 6.12% compounded annually
Average inflation rate 1953-1995: 4.48%
Average inflation rate 1995-2008: 2.02%
Average inflation rate 1953-2008: 3.89%
If we are to predict a 10% price drop from 2007 to 2011, that would mean the average home price in 2011 is $338612.
From 1995 to 2011, that would represent an average yearly increase of only 3.25%. That is higher than inflation since 1995, but significantly lower than historical home price increases (as historical home price increases have been significantly higher than inflation in Canada in the last 50+ years).