Canadian real estate has been a resounding success story throughout the pandemic, often referenced as a measure of our nation’s economic health.
While the staggering gains seen in detached housing values have been a boon for existing homeowners, rising prices—a result of critically low inventory and rising demand—have made home ownership an elusive dream for many Canadians.
However, those seeking more affordable housing options are finding a cure-all in the condo market, which offers affordability, availability, amenities, and neighbourhood liveability.
A regional overview
One might argue that the condo market is the true success story. Despite a marked decline in the spring of 2020, condo sales made a comeback in 2021. When comparing year-over-year sales (January to August), RE/MAX brokers and agents reported that strong gains were seen in Western Canada, with condo sales rebounding 87 per cent in Greater Vancouver and 83 per cent in Calgary.
Meanwhile in the Greater Toronto Area (GTA), condo sales increased by 71 per cent in 2021, followed by Halifax-Dartmouth (rising 30 per cent) and Ottawa (up 18 per cent). Young homebuyers have been driving demand for condos, with many looking to lock in low interest rates and buy property before prices climb beyond their means.
The greatest concentration of condo sales this year has been in Greater Vancouver, where they represented nearly half (48.2 per cent) of total residential sales in 2021, up from 46 per cent one year ago. Condominium apartments and townhomes in the GTA followed with a 34.5-per-cent share of the overall market, up from 30.8 per cent one year earlier.
Almost one in four properties sold in Ottawa between January 1 and August 31, 2021, was a condominium, compared to the same period in 2020 (24.3 per cent versus 23.3 per cent). Meanwhile, in Halifax-Dartmouth, the condominium segment represented 17.3 per cent of total residential sales, up from 15 per cent one year earlier. While overall condominium sales climbed in Calgary year-over-year, market share declined by just under one per cent in 2021, to 14.2 per cent.
What does this mean moving forward?
The condo market is expected to continue its upward trajectory, as more Canadians and new immigrants look to this segment of the market to fulfill their housing needs and wants. Are we prepared to meet this demand, or are we doomed to repeat the cycle of low supply and rising prices, in what may be one of the few affordable options left for home ownership?
Ultimately, Canada needs a collaborative national housing strategy; a plan that involves all levels of government, rather than relying on temporary band-aid measures, such as ending blind bidding or implementing new taxes.
In the meantime, home ownership in Canada continues to be one of the best investments a person can make.
Christopher Alexander is the president of RE/MAX Canada. He oversees operations for the company-owned RE/MAX Canada region, which includes Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan. He also works closely with the leaders of the independent RE/MAX Quebec region.
Photo by PhotoMIX Company
Condo Market offers hope? The condo market offers the last possible option for many Buyer’s to own a property in Urban locations. I would not even classify some of these four hundred square foot condo’s as a home, but rather a storage unit for a single person. Next stop, Sleeping Pods. Designed to accommodate one single bed and an airplane style bathroom. Which obviously will result in the fashion of those one piece suits we see on sci-fi shows taking over society. Worn twenty-four-seven. Eliminates the need for any storage in your Sleeping Pod.
Yes Canada is in desperate need of a Governmental Combined Housing Strategy and Plan. And yes Home Ownership is the best investment, on many levels, a person can make.
You make some excellent observations. I hope you keep pressuring Governments into taking action.