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dbax791- A condo or townhouse owns a share of the total property- building and land. Their value is more associated with rental rates than house values because that is the type of people generally buying them- people tired of paying rent or those looking to rent them out. If the mortgage is going to cost more than the rent, then people will not buy them. Lately the condo market in my area has also been fueled by people who just cannot afford the price of a house. This also makes them more subject to price declines if there are a lot of rental vacancies in the area which results in lower rents asked. If house demand drops, people generally will either take the property off the market or leave it for sale longer- it is very rare that house prices decline by much, although it can happen as Silicon Valley has seen in recent years.
Lower interest rates have allowed people to purchase more expensive homes because the lower rates mean lower payments. It is more the payment than the actual price of the house that effects a person's decision to buy or sell. If you want to talk appreciation, my condo has gone up nearly three times what I paid for it six years ago. If you are considering a condo, be sure to also look at how well the property is maintained. My board is willing to spend our Homeowners fees to maintain the property and keep our values. Yes, location is important as well. Don't just look at how much the homeowner's fees are but also what you get for them. Also remember to include them in budgeting how much you pay each month. They will also probably increase over time.
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I add new pictures to my photo gallery pretty regularly. You can see them here if you are interested: http://www.pbase.com/jeffryz 
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