Canada’s slow real estate market is finally beginning to impact condo apartment prices. CREA data shows its condo apartment house price index (HPI) fell in June. Despite weak demand and rising inventory, prices have outperformed—falling less than the general market. That appears to be changing as price drops get larger, and the rut turns into outright project cancellations.
Canadian Condo Prices Fell To A 4 Year Low
Condo apartment prices: The seasonally adjusted Canadian condo apartment HPI. In Canadian dollars.
Source: CREA; Better Dwelling.
Canadian condo apartment prices are starting to crack under pressure. The price of a typical condo fell 0.7% (-$3,400) to $488,400 in June, marking the 20th consecutive month of declines. The drop has helped push prices 5.2% (-$26,600) lower than last year, with the benchmark now at a 4-year low.
Canadian Condo Prices Entered A Second Wave of Corrections
Condo apartment prices: The 12-month change for the seasonally adjusted Canadian condo apartment HPI. In percentage points.
Source: CREA; Better Dwelling.
Condo prices have kicked off a second-wave correction, with losses accelerating. The 12-month change showing a 5.2% decline indicates mounting downward pressure, with the steepest rate of losses since 2023. While there’s been discussion about the market firming due to a mild improvement in sales, it’s clearly not enough to challenge the flood of inventory in key markets like Toronto and Vancouver.
Canadian Condo Price Declines Have Been Relatively Small So Far
Despite the weak demand, mounting inventory, and 20 months of price declines—condos haven’t dropped much. The benchmark is down 13.0% (-$73,100) since peaking in March 2022. A 13% loss is substantial, but the losses are smaller than the CREA composite benchmark (-17.8%), representing all home types.
Canadian condo sales remain weak, and inventory is still rising. Prices held up better than other segments, but that’s fading as a second wave of corrections takes hold and cancellations begin to pile up.
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