Canada’s condo market has provided big returns for investors, but it’s currently running on fumes. Canadian Real Estate Association (CREA) data shows the price of a benchmark, or typical, condo apartment fell in July. The investor-dominated segment didn’t see prices fall nearly as much as the general market since rates began climbing. However, condos have resumed a downturn after a short break, as rate cuts fail to bring a surge of buyers that many had anticipated.
Canadian Condo Prices Slip But Retain Most Recent Gains
The price of a benchmark condo apartment across Canada.
Source: CREA; Better Dwelling.
Soft demand for condo apartments is wearing down prices, but they remain lofty. The price of a benchmark condo apartment fell 0.5% (-$2,600) to $526,500 in July. Prices are now 3.2% (-$17,400) lower than the same month last year. It’s a substantial discount, and the market momentum is heading in the wrong direction.
Canadian Condo Prices See A Double Dip Downturn
The annual growth rate for the price of a benchmark condo apartment across Canada.
Source: CREA; Better Dwelling.
Condos have once again seen prices turn negative. Annual growth has decelerated for five consecutive months. It’s the sharpest decline since June 2023, only a little over a year ago. No record for the size of decline, but the duration is treading new territory. This is the first recorded double dip for annual growth—two periods of declines separated by less than a year of positive growth.
Canadian Condo Prices Are Only 10% Below Record High
Looking at just the 12-month change in price understates how much they’ve pulled back. The benchmark price is 9.6% (-$55,600) lower than the record high reached in April 2022. Significantly more than people may assume from just the annual growth rate, but not even enough to be considered a correction. If the market warrants a correction, this double dip might be where it starts.
Canadian condo prices haven’t pulled back nearly as much as the general market. At 9.6% below the record high, it’s outperforming the composite of all home types by 5 points. Either this market is much stronger than single-family homes or the primarily investor-driven segment still hasn’t seen the full scope of its downturn.
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