More than 50% increase in condo listings in some urban centres—investors finding deals in some Canadian cities

Condo inventories increase dramatically in major urban centres across Canada

Growth in inventory levels was highest in BC's Fraser Valley (58.7%), followed by Greater Toronto (52.8%), Calgary (52.4%), Ottawa (44.5%), Edmonton (17.7%), the Halifax Regional Municipality (8.1%) and Vancouver (7.3%).

Despite double-digit increases in inventory, the RE/MAX report claims that the two largest cities in Alberta, Edmonton and Calgary, remain firmly entrenched in a seller's market. A seller's market occurs when there are more buyers than real estate listings. In a seller's market, homeowners can increase their sale price because of the increased interest from buyers.

However, in other municipalities, such as BC's Greater Vancouver and Fraser Valley area, as well as Ottawa and Halifax, NS, RE/MAX reports that conditions are more balanced. That's because these markets slowed down, in terms of sales activity, due to the ramp up in prices in recent years. Alexander also pointed out that the recent price declines experienced in the Torotno market have likely bottomed out, at this point in time.

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Increased inventory did not trigger a drop in condo prices

Despite the increasing number of condos for sale, most major urban areas also reported increases to average condo sale prices.

The average condo prices across the seven markets in 2024, along with the price gains in 2024:

• Greater Vancouver: $823,550 with 1.9% increase in average sale price
• Fraser Valley: $559,215 with 1.9% increase in average sale price
• Halifax: $484,491 with 1.2% increase in average sale price
• Ottawa: $447,042 with 2.3% increase in average sale price
• Calgary: $347,203 with 15% increase in average sale price
• Edmonton: $200,951with 4% increase in average sale price
  
  

Only one market reported an average price decrease: the Greater Toronto area. In 2024, the average condo price in the GTA was $732,648, along with 2% decline in the average condo price.

Alberta condo sales

Sales were robust in Alberta, which RE/MAX attributed to inter-migration of Canadians from other parts of the country. As a result, sales were up for condos in Alberta's biggest cities with Edmonton, AB leading the way with a year-over-year increase of 37%. This is the region's best performance of the previous five-year period.

Calgary, AB had a more tempered market in 2024, with 2.6% increase in sales, year-over-year.

In other Albertan cities, condo sales softened, instead.

Ontario condo sales

In the Greater Toronto Area, the sheer volume of condominium listings may have started to put pressure on sale prices, but that doesn't mean specific communities didn't experience robust sales. For example, the midtown communities of Yonge-Eglinton, Humewood-Cedarvale and Forest Hill South, reported a 25.3% increase in condo sales — 114 condo sales in 2024 compared to 91 sales in 2023.

There’s also the neighbourhoods of Bedford-Park-Nortown, Lawrence Park and Forest Hill North, where condo sales increased by 13.3%. In the west end, the communities of High Park, South Parkdale, Swansea and Roncesvalles reported a 15.7% upswing in units sold. Other neighbourhoods including High Park North, Junction, Lambton Baby Point and Runnymede-Bloor West Village climbed 25.2%. In the east end, the Beaches reported 20.3% in sales activity.

"In many markets, end users are in the driver's seat right now. While investors are an important part of the purchaser pool, this point in time is a unique opportunity for aspiring condominium buyers who, for a short window of time, will likely see less competition from investors and a better supply of product,” Alexander said. “This is especially true in Toronto and Vancouver, where the impact of monetary policy has hit investor profit margins to a greater extent despite high rent and low vacancy rates. With values set to rise, this is arguably the most favourable climate condominiums buyers have seen in recent years."

Condo investment temperature check

According to the report, most of the sales activity was driven by first-time or homeowner demand — not investor activity. RE/MAX found that investor activity stalled in most markets with the slowdown most notable in Greater Toronto. According to data from Urbanation and CIBC Economics, as many as 30% of GTA condo investors experienced negative cashflow on rental properties as mortgage carrying costs climbed.

Not all markets are off-limits for investors

Affordability has been a significant draw for out-of-province investors, particularly those from Ontario and BC. who are seeking opportunities further afield to bulk up their portfolios. Out-of-province developers and builders have been similarly motivated by Edmonton's lower development costs and lack of red tape. Halifax, to a lesser extent, has drawn investor interest, with affordability, low vacancy rates and upward pressure on rents being the primary factor behind the city's appeal.

"The housing mix is evolving very quickly as a result of densification and urbanization. Condominiums now represent the heart of our largest cities, and it is inevitable that further development will see condos become the driving force accounting for the lion's share of sales in years to come," Alexander said. "It's a physical and cultural shift that Canadians are not only adjusting to but are embracing, as younger generations redefine urban neighbourhoods, sparking demand for vibrant and robust amenities, infusing new life in Canada's urban cores in the process."

Sources

1. RE/MAX Canada: RE/MAX’s Canada Condominium Report (2024)

2. RE/MAX Canada: RE/MAX’s Canada Condominium Report (2024)

— with files from Nicholas Sokic