The condominium apartment market in major Canadian cities like Toronto and Vancouver is experiencing significant challenges, according to recent data from the Canadian Housing Statistics Program. Despite high prices remaining near pandemic-era peaks, sales volumes have dropped, and inventory levels are rising.
In Toronto, the average condo apartment selling price in Q2 2024 was $729,005, down 1.2% from the previous year. Sales decreased by 19.8% year-over-year, while new listings surged by 36.5%. This imbalance has led to elevated standing inventory levels.
The situation in Vancouver mirrors Toronto’s trends. The average selling price of a condo in Vancouver decreased by 0.1% year-over-year to $768,200 in August 2024. Both cities are seeing a slowdown in condo sales, with Vancouver experiencing a 17.1% decrease from January to August.
READ: Bank of Canada Reports Rising Vulnerabilities in Housing Market
Investors, who have traditionally driven the condo market, are becoming increasingly cautious. In 2022, 38.9% of condominium apartments in Toronto and 34.2% in Vancouver were investment properties. However, high interest rates and concerns about future price growth are making investors wary of purchasing pre-construction units.
The data also reveals a trend towards smaller units, particularly among investors. In Toronto, 64.5% of new condos under 600 square feet built after 2016 were investment properties, compared to 44.1% of those 800 square feet and over. This trend is contributing to a decrease in the median size of new condos, potentially impacting long-term livability.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
