Condominium markets slow as interest rates rise once again

A report released by Re/Max Canada shows recent economic indicators suggesting that Canadian homebuyers may face more interest rate increases. This will slow the condominium markets in major Canadian centres.

A report released by Re/Max Canada shows recent economic indicators suggesting that Canadian homebuyers may face more interest rate increases. This will slow the condominium markets in major Canadian centres.

Nearly 100 communities in seven major markets were assessed in the Re/Max Canada 2023 National Condominium Report, including Greater Toronto Area, Ottawa, Halifax-Dartmouth, Greater Vancouver, the Fraser Valley, Edmonton, and Calgary.

Condominium sales made from May through August, while strong, still didn’t compare to 2022’s year-to-date sales. Over the first eight months of this year, the segment’s overall sales declined in each market except two – Calgary rose over 20 per cent and Edmonton three per cent year-over-year.

As for the average price, it stayed consistent in Halifax-Dartmouth, Calgary, and Greater Vancouver, and went down in Edmonton, the Fraser Valley, Ottawa, and Greater Toronto Area.

Three markets – Ottawa, Fraser Valley, and Greater Vancouver – experienced a lower condominium market share, thanks to increased borrowing costs and the stress test’s two per cent addition to the minimum qualifying rate.