Canada’s condo supply is surging — and it’s not just in Toronto

Hopeful Canadian homebuyers whitethorn good person their prime of the litter erstwhile it comes to condos successful galore housing markets crossed the country, a caller study from Re/Max Canada shows.

The nationalist brokerage said successful its nationalist condo outlook released Wednesday that listings successful this conception of the marketplace person “soared” successful caller months.

A glut of condos successful Toronto — present sitting astir 7 months’ worthy of inventory — has been good documented implicit the summer.

While Re/Max noted that Toronto’s condo listings were up 52.8 per cent year-over-year arsenic of August, the metropolis isn’t alone. B.C.’s Fraser Valley led the mode with a 58.7-per cent summation implicit the aforesaid period, with Calgary’s inventory up 52.4 per cent and Ottawa’s rising 44.5 per cent.

The different cities included successful the report, Edmonton, Halifax and Vancouver, saw yearly gains betwixt 7.3 and 17.7 per cent.

Re/Max argued that condo sellers person been hitting the marketplace successful hopes that purchaser request volition instrumentality towards the last months of the year, acknowledgment successful portion to expectations for much involvement complaint cuts from the Bank of Canada.

Housing affordability has seen marginal improvement successful immoderate markets this twelvemonth arsenic owe rates diminution but location prices clasp dependable oregon autumn amid slower-than-typical income activity.

The condo marketplace is peculiarly worthy highlighting for first-time and sidelined homebuyers arsenic Re/Max noted it’s not lone a “first step” location ownership, but progressively the “middle step” arsenic good successful Canada’s astir costly lodging markets.

In Toronto, the mean terms of a condo was down 2 per cent successful the archetypal 8 months of the twelvemonth compared to the aforesaid play successful 2023.

But successful different cities surveyed, Re/Max said “values person held up amazingly well” against the influx of listings.

Calgary and Edmonton — some high-demand destinations for interprovincial migration — saw mean condo prices emergence 15 and 4 per cent year-over-year successful the period, respectively. Other markets included successful the study reported low-single digit gains successful mean values.

Edmonton’s condo income levels were up 37 per cent annually successful the archetypal 8 months of 2024, representing the city’s champion show successful the past 5 years, Re/Max noted. The brokerage pointed to an uptick successful capitalist enactment successful Edmonton arsenic bucking the nationalist trend.

Like would-be buyers drawn to the Albertan superior for its comparative affordability, out-of-province investors besides spot deals to beryllium had successful Edmonton’s condo market.

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“Savvy investors successful Edmonton person been actively revitalizing bushed condominium banal and subsequently renting it retired for apical dollar,” the study read.

Outside of sellers markets successful Alberta and different blistery pockets successful still-active neighbourhoods, Re/Max Canada president Christopher Alexander positioned the existent authorities of the condo marketplace arsenic “the calm earlier the storm.”

With Re/Max anticipating a busier outpouring 2025, Alexander argued that “aspiring condominium buyers” present person a abbreviated model wherever they’ll look little contention for investors for what’s becoming a glut of proviso successful galore markets.

“With values acceptable to rise, this is arguably the astir favourable clime condominiums buyers person seen successful caller years,” helium said successful a statement.

While Re/Max argues condo prices person bottomed retired successful Toronto, different experts foretell determination could beryllium further yet to autumn for location values successful city’s condo market.

TD Bank economist Rishi Sondhi said successful a precocious September report that helium expects a mid-to-high-single digit driblet successful Toronto’s mean condo prices done to the aboriginal portion of adjacent year.

“The comparatively subdued income betterment means that it volition apt instrumentality respective months to soak up these inventories, and further terms concessions could beryllium required to facilitate the process,” helium wrote.

An RBC lodging forecast released Wednesday also estimates that Toronto condo prices person further to autumn successful the near-term.