Canadian Condominium Market Trends in 2023 Sales Prices and Outlook
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The 2023 National Condominium Report examined nearly 100 communities across major Canadian centers, revealing a downturn in condominium sales for most markets in the first eight months of 2023 compared to the same period in 2022. Despite a surge in sales from May to August, the report highlighted that the robust home-buying activity in the initial quarter of 2022 set a high benchmark that wasn't surpassed later in the year. Notably, Calgary witnessed a substantial 22% increase in sales, while Edmonton experienced a modest 3% uptick in year-over-year sales.
During this period, average prices remained stable in Greater Vancouver, Calgary, and Halifax-Dartmouth but declined in the Fraser Valley, Edmonton, Greater Toronto Area (GTA), and Ottawa. Analysts noted a slowdown in pre-construction sales, particularly in the GTA, attributing it to resale units being priced lower than what builders aimed for, leading to a cautious approach among first-time homebuyers due to uncertainties surrounding Bank of Canada's interest rates.
Affordability emerged as a major concern across most Canadian markets. Experts anticipated a softer end to the year due to economic conditions impacting purchasing power and consumer confidence. Despite inventory build-up and delays or cancellations of projects, experts remained cautiously optimistic. While values might soften further in most areas, the impact could be tempered by a tight rental market and ongoing population growth. They projected a potential resurgence in condominium sales by the second or third quarter of 2024 as quantitative tightening eases, anticipating renewed home buying interest.
Read the full article on: REAL ESTATE MAGAZINE
