If you’re in the market for a condo, the price still may not be right, but there are plenty of listings to pick from.
What happened: Canada’s ritziest real estate markets are being flooded with so many listings that there’s now a shortage of signposts to hang “For Sale” placards in Vancouver.
- The latest data shows there are more than 16,000 homes listed for sale in Metro Vancouver (up 29.7% from last April) and over 27,000 listings in the Greater Toronto Area (up 54%).
Why it matters: After years of a supply-constrained market when it seemed like every new listing sparked a frenzied bidding war, the surge of active listings is now starting to push home prices down and give buyers more power to shop for a deal.
Yes, but: Condos make up a large chunk of listed properties, at 46% in Vancouver and 35% in the GTA, and are often not designed for young families looking to buy their first home.
- The average size of condos built in 2016-17 was 665 square feet — maybe enough space for a single person or couple, but a tight squeeze for kids.
What’s next: In the past, investors would likely have scooped up these condos to rent to temporary students and immigrants. But with those taps of demand turned off, it’s unclear who the buyers for these tiny condos will be — and how far prices will fall before we find out.—TS