Condo listings have climbed across seven large urban centres, according to the 2024 RE/MAX Canada Condominium Report, which examined condo activity between January and August 2024.

More demand was expected leading up to the fourth quarter and early 2025. The report concurs inventory levels were highest in the Fraser Valley (58.7 per cent), followed by Greater Toronto (52.8 per cent), Calgary (52.4 per cent), Ottawa (44.5 per cent), Edmonton (17.7 per cent), Halifax Regional Municipality (8.1 per cent) and Vancouver (7.3 per cent).

Values have held up surprisingly well given the influx of listings, with gains posted in Calgary (15 per cent), Edmonton (four per cent), Ottawa (2.3 per cent), Vancouver (1.9 per cent), Fraser Valley (1.9 per cent), and Halifax (1.2 per cent).

Meanwhile in Greater Toronto, the average price fell two per cent short of year-ago. While sales were higher in Alberta due to in-migration from other parts of the country, Edmonton led the way in terms of percentage increase in the number of condos sold, up just close to 37 per cent from year-ago levels, marking the region’s best performance in the previous five-year period. This is followed by a more tempered Calgary market, which was up 2.6 per cent over 2023. Remaining markets saw home-buying activity soften in the condominium sector.

“High interest rates and stringent lending policies pummelled first-time buyers in recent years, preventing many from reaching their home-ownership goal, despite having to pay record high rental costs that mirrored mortgage payments,” RE/MAX Canada President Christopher Alexander said in a press release. “The current lull is the calm before the storm. Come spring of 2025, pent-up demand is expected to fuel stronger market activity, particularly at entry-level price points, as both first-time buyers and investors once again vie for affordable condominium product.”

Edmonton and Calgary remain in seller’s market territory, while conditions are more balanced in Greater Vancouver, Fraser Valley, Ottawa and Halifax. These markets will likely transition in 2025. Toronto may be the last to emerge from more sluggish conditions, however, Alexander notes that it’s a market that has been known to turn quickly. Absorption rates will be a key indicator. Certainly, the market forces of supply and demand always prevail, so some neighbourhoods will fare better than others. Of note in Toronto, prices have likely bottomed out and that’s usually evidence that a turnaround is in sight.

The current uptick in inventory levels is drawing more traffic to listings, yet buyers remain somewhat skittish across the country. The first two Bank of Canada interest rate cuts did little to entice prospective homebuyers to engage in the market, given the degree of rate increases that took place. However, with further rate reductions expected and policy adjustments to address affordability and ease entry into the market, activity will likely start to climb, particularly among end users.

“Even in softer markets, hot pockets tend to emerge,” says Alexander. “In the condominium segment we’re seeing a diverse mix among the most in-demand areas, ranging from traditional blue-chip communities to gentrifying up-and-comers, as well as suburban hot spots. Condominiums in choice recreational areas were among the markets posting stronger sales activity—a trend that was also reflected in our single-detached housing report issued earlier this year.”

RE/MAX also found that investor activity has stalled in most markets. The slowdown is more evident in Greater Toronto, where up to 30 per cent of investors have experienced negative cashflow on rental properties as mortgage carrying costs climbed, according to analytics by Urbanation and CIBC Economics. Investor confidence is expected to recover in the months ahead, as interest rates fall and return on investment (ROI) improves.

In Edmonton, supply is outpacing demand. Investors in Edmonton have been actively revitalizing condominium stock and renting it out for top dollar, while out-of-province developers and builders have been motivated by Edmonton’s lower development costs and lack of red tape.

Immigration to Canada and in-migration/out-migration from one province or region to another is expected to prompt future demand for condos. Canada’s urban population has also been climbing consistently with an estimated 80 per cent of Canadians residing in urban centres. Increasing density and urbanization, along with more population growth is expected to support the long-term outlook for condo activity nationally.