Recent economic indicators suggesting that Canadian homebuyers could be facing increasingly strong headwinds in the form of further interest rate hikes signal the end of a short-lived bounce in condominium activity in major markets across the country.

RE/MAX examined close to 100 communities in seven major Canadian condo markets and found that stronger sales in May, June, July and August of this year were no match for year-to-date 2022 levels, given the strength of home-buying activity in the first quarter. Overall sales in the condominium segment fell in all but two markets in the first eight months of 2023, with Calgary climbing a substantial 22 per cent, and sales edging up a nominal three per cent in Edmonton year-over-year.

2023 Canadian Condo Market Trends

  • Luxury: At the upper end of the price spectrum, the luxury condo market remains healthy in Toronto and Calgary while activity has slowed at higher price points in Greater Vancouver, Fraser Valley and Halifax. Downsizing buyers who are selling more expensive freehold properties are in large part behind the push for condominiums.
  • Location: More and more buyers are willing to go farther afield to realize better value, greater bang for their buck, or avoid land transfer taxes. Others are downsizing their expectations. Many are now expanding their search perimeters due to limited inventory in popular areas and price points—even if it means moving to provinces that offer better value.
  • Costs: Maintenance fees and the health of condominium boards are factors cited in buying decisions in several markets. Buyers don’t want unexpected expense outlays, given the already high cost to carry a home. Condos offer an affordable entry-point, but unlike freehold properties, deferring repairs and maintenance are not an option. Therefore, it’s important for buyers to know that there are no surprises. More buyers are doing their due diligence to ensure all is in order.
  • Assignments: Assignments represent opportunities at present in markets like Greater Vancouver, Fraser Valley, and the Greater Toronto Area. Many presale buyers active three to four years ago have found that they no longer qualify for mortgages at new interest rate levels. With their purchases nearing completion, many are looking to sell (or assign) their condos to new purchasers, in the hopes of recouping their down payments and possibly some equity gain.
  • New Construction: New condominium construction has slowed considerably in most markets, with many new projects delayed or cancelled. In some cases, city approvals have slowed the process, but in most cases, the financial viability of the project just doesn’t make sense in the current economic environment.

Download Condominium Sales, Average Price & Market Share Data Table

Regional Insights

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