Condominium Market Share Continues to Climb in Major Canadian Real Estate Markets, as More Buyers Seek Affordable Housing Options
Double-Digit Increases to Rental Rates Spark New Wave of Condo Buyers in Alberta
- Buyers from British Columbia and Ontario continue to be active in Alberta’s condominium market.
- The lion’s share of condominium activity is occurring at lower price points. In Toronto, for example, the bulk of condominium apartment sales now hovers in the $500,000–$700,000 range, down from $600,000–$800,000 earlier in the year.
- Condominium markets are losing inventory to an attractive rental market, as would-be sellers simply opt to lease their units long-term.
- Competing offers are still occurring in areas such as Halifax-Dartmouth, although not at the same pace as earlier in the year.
Condominium market share has grown in major urban Canadian real estate markets yet again this year, a reflection of new market realities and the shifting course of entry-level buyers, according to a new report by RE/MAX Canada.
RE/MAX’s 2022 Canadian Condominium Report examined more than 120 communities in six major markets, including Greater Vancouver/Fraser Valley, Calgary, Edmonton, Greater Toronto, Ottawa and Nova Scotia. The report found that condominium sales were down in the first eight months of 2022 in four markets, including Greater Vancouver/Fraser Valley, Greater Toronto, Ottawa and Nova Scotia, while Calgary and Edmonton reported double-digit sales increases over the same period in 2021. Condo values are up in almost all markets year-over-year, with many bolstered by a robust strong first quarter.
Condominium market share advanced across the board as a proportion of total Canadian real estate sales. Upswings were reported in five out of six markets analyzed, ranging from a low of 0.08 per cent in Ottawa to a high of 6.6 per cent in the Fraser Valley. Compared to year-to-date levels one year ago, condominiums now represent just over 54 per cent of total residential sales in Greater Vancouver, 36.3 per cent of residential sales in the Greater Toronto Area, almost 32 per cent of sales in the Fraser Valley, just over one in four sales in Edmonton and Ottawa, and almost one in five sales in Calgary. Nova Scotia was the only market to register a decline in condominium market share.
Call Stan van Woerkens for further details on the Vancouver market 604-306-2550 or visit stanvanwoerkens.com - stanvanwoerkens@gmail.com