The RE/MAX Canada 2021 Condominium Report analyzes trends in five major Canadian real estate markets and 100 sub-markets. Overall, condo sales will remain affordable through 2021. Greater Vancouver and Calgary will post the largest percentage increases in 2021, while Ottawa and Halifax-Dartmouth will see sales decline. In other words, buyers should consider condos before purchasing freehold homes. This report is especially important for first-time buyers.
In BC, the condo market has tightened over the last half year. The price of houses over C$4 million has jumped 250% year-over-year. And over the past month, sales of homes over C$4 million have risen by 78%. While these trends are encouraging, they do not reflect the overall trends in the condo market. While the market is expected to remain firm through 2021, some regions will have higher prices.
In Toronto, the condominium market is more tightly priced than in other Canadian cities. A lack of supply is one of the main reasons why the condo market is tight in Toronto. The demand for condos in Toronto is also lower than it was in years past. While prices have risen significantly in many areas of the country, supply is an ongoing challenge in all cities. And the condo market in Toronto is more competitive than ever.
Despite this increase in the number of homeowners, the market will remain tight in 2021. As a result, prices will likely rise, pushing up affordability. Interest rates will rise, but wage growth will keep the balance. The rental market will remain strong and stabilize compared to the last two years. Moreover, new home construction will be anticipated but will be delayed due to labor and supply issues. These factors should be considered when planning for a new home. If you have any query then book your showing here.
The condo market will continue to grow in 2021. The market will be the largest in the Greater Toronto Area, with a share of 49.5%. However, the Ottawa market will be the smallest. The GTA, Ottawa, and Halifax-Dartmouth will experience a decline in 2021, but will still remain the largest market shares. Despite the slowdown, the overall price of a condo in Canada will rise 3% to 5% in 2021.
Increasing affordability is an important issue for first-time homebuyers. While there are many reasons to avoid condos, the fact that they are cheaper than comparable homes may prevent first-time buyers from buying them. In addition, the lower interest rates will reduce the cost of condos. Lastly, buyers will have to deal with more complex home sales, which will increase the number of new-home sales. This means that the value of the condominium market will rise.
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