On Tuesday RE/MAX released its 2021 condominium report, with numbers pointing at an incredible year for the Canadian condo market.
The report examined trends and developments in five major cities and many more submarkets over the past year. The key takeaway was that, following a downturn last year, the condo market across the country is seeing a massive resurgence.
The most startling statistics come from Vancouver and Calgary, which saw an 83-87% increase in sales volume respectively from January to August of this year when compared to the same period last year.
They cite two major factors that could be driving this recent push for condos. The first is affordability. Many people are turning away from detached homes as the prices rise far beyond their means. For many getting into the real estate market today and looking to take advantage of low-interest rates, condos represent the only viable option. This is particularly true for younger buyers, who RE/MAX says are driving much of the increased demand.
The other major factor is low supply in other property types. However, with the growing popularity of condos, similar supply issues could arise soon in this segment.
“Supply has declined from almost eight months to just under five year-over-year, although inventory levels are still 16% ahead of 2020 levels,” says Elton Ash, Executive Vice President at RE/MAX Canada.
Once any excess supply is bought up, Ash says condominium values are likely to continue appreciating
While Vancouver and Calgary saw the greatest volume increase, the Halifax-Dartmouth region saw the greatest price increase. Condos there are up almost 30% in value this year. In Toronto sales were up 71%, while prices increased by 7.5%. Ottawa saw only a 29% increase in sales, but a 17.5% increase in prices.
The RE/MAX report on Canadian Housing Market Outlook for the fall of 2021 predicts that the fall housing market will remain steady, while the Canadian economy looks on the way to returning to more regular conditions.
All this considered, Canadian buyers investing in condos today will likely be very happy with their investments for the near future.
Read the full RE/MAX report here.