Posthaste: Condo sales are falling across Canada — except in these two markets

financialpost.com:

Looks like there’s trouble in condo land.

Pressures from the same forces of higher interest rates and economic uncertainty that have buffeted Canada’s housing market overall in past months are showing up in this sector.

According to Re/Max Canada’s 2023 national condominium report that came out today, condo sales in the first eight months of this year fell in all but two of the seven major Canadian cities studied, with average prices slipping lower in four — Greater Toronto Area, Ottawa, the Fraser Valley and Edmonton.

“While there was some momentum in the market early in September that dovetailed with the Bank of Canada’s announcement to pause interest rate hikes, the most recent inflation numbers extinguished the flame,” Re/Max Canada president Christopher Alexander said.

“Lifecycle sales will continue to contribute to steady activity, but a comeback similar to that of the second quarter is likely out of the question.”

In Toronto, Canada’s condo hub, sales are down almost 13 per cent from last year and the average price has slipped 6 per cent to just under $750,000 as higher interest rates and a higher mortgage stress test put this market out of reach for more buyers, Re/Max said.

There has also been a surge in new listings in the Greater Toronto Area, with apartment inventory rising almost 24 per cent. As well a growing number of assignments are coming to market.

Many presale buyers who bought in Toronto, Vancouver and the Fraser Valley three or four years ago have found they no longer qualify for mortgages at today’s higher interest rates, the report said. As their condos near completion they want to sell (or assign) to new buyers to make back their down payment.

With demand down and supply rising, there is the