Whereas it continues to be difficult to purchase a home in Canada, the condominium market has been rising.
RE/MAX simply launched its 2022 Nationwide Rental Report, which confirmed that the condominium market share has elevated in Canada’s main cities.
six markets in Higher Vancouver/Fraser Valley, Calgary, Edmonton, Higher Toronto, Ottawa, and Nova Scotia, the report exhibits that condominium values are up in nearly all markets year-over-year.
RE/MAX Canada President Christopher Alexander mentioned in a launch that affordability is the important thing concern in at the moment’s housing market.
“Rising rates of interest have slowly eroded buying energy and, regardless of decrease housing values and cooling market circumstances, shopping for a home is more difficult now than ever earlier than,” he mentioned.
“For individuals who have adjusted expectations with each fee hike, the price of carrying a mortgage versus renting is now extra comparable, given sharp double-digit will increase in rental charges all through the key markets, however particularly in BC and Ontario,” he mentioned.
Whereas there have been fewer gross sales in 2022, condominium gross sales characterize a larger share of general gross sales as a result of patrons are determined for homeownership at an inexpensive value.
Actually, many of the condominium exercise is occurring at lower cost factors. However the condominium market is shedding stock due to the “engaging rental market, as would-be sellers merely choose to lease their items long-term.”
Sooner or later, condominium gross sales are anticipated to rebound in 2023 and 2024 as rates of interest start to stabilize or decline, says RE/MAX.
“As demand for condos ramps up once more, stock will contract, and value development will possible regain a stronger upward trajectory. The influence of the slowdown in new condominium development begins mixed with an insufficient provide of purpose-rentals towards a backdrop of intensified inhabitants development could exacerbate stock ranges of current product,” mentioned Alexander.
Higher Vancouver and Fraser Valley condominium market
The condominium market was stronger in some communities than in others.
- Vancouver West: 12.4 % decline year-over-year, with 3,211 gross sales versus 3,666 gross sales in 2021.
- Coquitlam: 12.8% decline year-over-year, with 1,000 gross sales versus 1,146 in 2021.
- Surrey North: 11.7% decline year-over-year, with 1,100 gross sales versus 1,255 gross sales in 2021.
Calgary condominium market
Calgary is booming with condos. Eleven out of 12 areas featured within the Calgary report noticed a rise in condominium gross sales, from 17.5% in Eau Claire to a 338.5% rise in Saddle Ridge.
Edmonton condominium market
Edmonton’s affordability performed a giant half within the improve in condominium gross sales seen right here. Out of the 26 markets, 22 noticed a rise in home-buying exercise, from gross sales up 2% in Queen Mary Park to a 112% improve in Lymburn.
Higher Toronto Space condominium market
Most areas noticed double-digit declines in gross sales of condos and townhomes, with a number of exceptions. Total, the common decline in gross sales year-over-year was 31%. Nonetheless, the condominium market didn’t surrender a lot market share, with 36.3% in 2021 and 34.5% in 2022.
Ottawa condominium market
Rental gross sales in Ottawa are “holding their very own,” says RE/MAX, with patrons returning to the downtown core. Total, the variety of items offered was down.
Halifax-Dartmouth condominium market
Condos are nonetheless a well-liked selection for individuals trying to enter the housing market on this area. Nonetheless, softer indifferent housing values have detracted some entry-level patrons, based on RE/MAX. Low stock has led to a number of gives on condos in key metropolis areas.