Sellers Anticipate Demand Rebound, Leading to Growth in Condo Inventory: Re/Max Report

October 9, 2024 TruthUSA

A recent study reveals that the supply of condominiums is increasing in most major Canadian markets due to more sellers listing their properties in anticipation of rising demand from buyers.

The report by Re/Max Canada, which analyzed condominium activity from January to August of this year, showed that B.C.’s Fraser Valley saw the highest year-over-year inventory growth at 58.7%, followed by the Greater Toronto Area at 52.8% and Calgary at 52.4%.

While sales decreased in most regions over the eight-month period compared to the previous year, Edmonton experienced a 36.7% increase in sales with 3,351 properties changing hands. On the other hand, the GTA, Greater Vancouver, and Fraser Valley all recorded sales declines of over eight percent.

Christopher Alexander, president of Re/Max Canada, projects that by the spring of next year, there will be a surge in market activity driven by pent-up demand, especially at entry-level price points, following a period where high interest rates and strict lending policies deterred many potential buyers.

The report cautions that Toronto, which has faced oversupply issues and low demand in the condo market, may be slower to recover from its sluggish conditions compared to other markets.

The GTA was the only region where average condo prices dropped year-over-year, declining by 1.9% to $732,648, while Calgary led in average price growth, increasing by 15% to $347,203.