Meanwhile, condo affordability in and around Toronto and Vancouver remains a challenge for first-time buyers.
Author of the article: Joel Schlesinger • for the Edmonton Journal Published Oct 20, 2023 • Last updated Oct 20, 2023 • 2 minute read Join the conversationYou can save this article by registering for free here. Or sign-in if you have an account.
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Edmonton trails only Calgary in condominiums resales growth so far this year, a new report notes, which also predicts the nation as a whole is entering a cool down period for even the real estate market’s most affordable segment.
“A lot of the condo market is in strong demand right now because of its affordable pricing,” says John Carter, realtor and broker/owner of Re/Max River City.
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Article contentIndeed, the new Re/Max 2023 National Condominium Report notes condos are more in demand in Canada as more buyers see their purchasing power shrink in the midst of higher mortgage rates.
Yet it also notes many markets are seeing an unfolding slowdown for even condo apartment sales, except in two markets: Edmonton and Calgary.
In Edmonton, condo apartment sales were up about three per cent, year over year, for the first eight months of the year.
Calgary’s sales grew 22 per cent — the largest percentage jump in activity among major Canadian cities, cited in the report.
In contrast, sales in the Greater Toronto Area decreased about 13 per cent, while in the Greater Vancouver Area sales fell about 17 per cent.
Prices are also falling or flat in those markets. In the GVA, the average price for a condo was up less than two per cent year over year, reaching about $815,000 in the first eight months of this year.
In the GTA, however, the average price fell about six per cent year over year to about $747,000.
Despite the price decline, condo affordability remains a challenge in the GTA for many first-time buyers amid higher mortgage qualifications with mortgage rates exceeding 5.5 per cent.
Advertisement 3 Story continues below This advertisement has not loaded yet, but your article continues below. Article contentBy comparison, Edmonton’s condominium market with its average price of about $193,000 — as stated in the report — is a bargain, says Melanie Boles, chair of the Realtors Association of Edmonton.
“Affordability is playing a massive role in the resurgence of condominiums in Edmonton,” she says, pointing to recent data from RAE.
RAE market statistics from September show apartment condominium prices actually fell month over month by nearly six per cent to about $182,000, also down about two per cent from last year.
Yet sales grew nearly 60 per cent last month from the same month in 2022, Boles notes.
“That is incredible growth considering what has gone on with apartment condos over the years.”
Boles adds that the apartment segment had struggled for much of the last decade.
Even amid the recent housing boom, budget-conscious buyers have looked to townhomes — another facet of Edmonton condominium market — as the alternative to single-family detached homes, which have long been the primary choice for buyers in the city.
Growing townhome demand is reflected in the growth of its average price in September, up nine per cent month over month and nearly 14 per cent year over year to reach about $269,000.
Resales for the segment are also up about 28 per cent year over year, RAE numbers show.
“We’re getting out-of-market buyers and local buyers,” Carter says about who is driving demand for apartments and row homes.
“But a lot of the out-of-market are investors buying the sub-$130,000 price range for apartment condos.”
First-time buyers, however, continue to prefer townhomes, he adds.
“That’s because they can still buy a three-bedroom townhouse with a little yard for under $200,000.”
