Housing markets across Canada have gone mondo condo, with condominium sales taking a bigger bite of the share of homes sold in most markets..RE/MAX’s 2022 Canadian Condominium Report researched condo sales and prices over the first eight months of the year in select communities in Greater Vancouver/Fraser Valley, Calgary, Edmonton, Greater Toronto, Ottawa and Nova Scotia. .Condo sales were down in all but two markets when compared to 2021 figures, however, the share of condo sales increased in each market, year-over-year, with the exception of Nova Scotia..Calgary and Edmonton each recorded double-digit sales increases. .The condo share of market in Ottawa was 8.8%; in the GTA 36.3%; in Edmonton 26%; in Calgary 19.8%; almost 32% in the Fraser Valley, and; 54% in Greater Vancouver..The share in Nova Scotia fell from 7.4% to 5.8%..The rise of the condo reflects new market realities, compared to the last two years, says Christopher Alexander, president, Re/Max Canada..“The affordability factor is the key issue in today’s housing market,” says Alexander. “Rising interest rates have slowly eroded purchasing power and, despite lower housing values and cooling market conditions, buying a house is more challenging now than ever before.” .“For those who have adjusted expectations with every rate hike, the cost of carrying a mortgage versus renting is now more comparable, given sharp double-digit increases in rental rates throughout the major markets, but especially in BC and Ontario.".“So, while fewer sales occurred in 2022, condominiums represented a greater proportion of overall sales, as buyers gravitated to affordable options to achieve home ownership.”.Addressing the sales decline, Elton Ash, executive vice-president at Re/Max, says 2021 saw record sales in almost all markets. .“Given a significant amount of buyer demand has been satisfied, and a portion of buyers are waiting it out on the sidelines due to rapid rate increases, the decline in sales in 2022 was not only expected, but the natural course of events,” says Ash. .“Buyers should be cautioned the current slowdown in sales activity is likely not indicative of a crash. Prices for condominium products remained stable or risen in most major urban centres year-to-date.”.“Buyers, for the most part, have finally been able to take a breath in Canada’s active condominium market since the heated momentum of recent years has cooled with inflationary pressures, shifting conditions into more balanced territory,” says Alexander..“That balance provided a rare window of opportunity for those ready and able to make their moves, from first-time buyers gaining a foothold in the market to move-up buyers and empty-nesters.”.Regional Highlights.GREATER VANCOUVER & FRASER VALLEY.Activity varied by community. Sales in Coquitlam were 12.8% off last year’s breakneck pace, with 1,000 sales to the end of August, compared to 1,146 over the same period in 2021. Vancouver West registered a 12.4% decline year-over year, with 3,211 versus 3,666 sales one year ago. Sales in Surrey North in the Fraser Valley were down 11.7 % year-over-year, with sales just over 1,100, down from 1,255 sales in 2021,.CALGARY.Condominiums sales increased 65% year-over-year, with 11 of the 12 communities measured in Calgary seeing an increase in sales. Increases ranged from 17.5% in Eau Claire, to a high 338.5% in Saddle Ridge, obviously skewing the market-wide figure..EDMONTON.Year-to-date sales (January-August 2022) were up 23% over 2021 levels. Twenty-two of the 26 communities measured in Edmonton showed sales increases from 2% in Queen Mary Park to 112% in Lymburn. .GREATER TORONTO AREA.The 416/905 area code districts had double-digit declines in sales, except for the 416’s Bathurst Manor/Clanton Park and Yonge-Eglinton-Forest Hill South-Cedarvale-Humewood, as well as the 905’s Halton Hills and Whitby, where sales were off record levels by 7.5%, 8.8%, 7.7% and 9.3% respectively. Two areas, Caledon and Orangeville, actually showed sales increases of 8.3% and 33.3% respectively.. OTTAWA.Many buyers returned to the downtown core and while the number of units sold overall were down in the city year-over-year, sales were on par with 2021 levels in Centretown. Two areas, Lowertown Market and Old Ottawa East were down 2.8% and 4.2% respectively. .HALIFAX-DARTMOUTH.While softer detached housing values detracted some entry-level buyers from condominium ownership in Halifax-Dartmouth, condominiums remain a popular choice for those looking to achieve home ownership. Overall inventory levels have been an issue in the Halifax-Dartmouth area this year, playing a role in the downturn in condominium sales. Multiple offers are still occurring on some condominium product in key areas of the city.
