Canadian real estate sales have been impacted by the pandemic in an unexpected way. RBC Economics recently unpacked a trend of rising condo apartment listings. Dense cities filled with condo apartments, are seeing sellers flood the market. Meanwhile, mostly detached suburban markets are seeing inventory heading in the opposite direction.
Toronto Condo Listings Rise 134% In The City
Greater Toronto real estate is seeing a lot of condo sellers hit the market, especially in the City. The City has 134% more condo listings in September, when compared to last year. To contrast, detached home listings are down 12% over the same period. The 905 suburbs saw a similar trend, with condo listings rising 82%, and detached listings falling 34%. Not quite as extreme, but the suburbs are seeing more condo sellers as well.
Canadian Real Estate ListingsThe percent change in listings for September, compared to a year before. Source: RBC Economics, CREA, Better Dwelling.
Greater Vancouver Condo Listings Rise 21%
Greater Vancouver is seeing condo listings rise, and detached inventory fall – but not to the extent of Toronto. Listings of condo apartments for sale are up 21% in September, while detached listings have fallen 21%. Unlike Toronto or Montreal, the bank didn’t separate the City from the suburbs. One assumes it’s because Vancouver is smaller, and is structured similar to pre-amalgamated Toronto and Montreal.
Montreal Condo Listings Rise Over 41% In The City
Montreal real estate is seeing higher levels of condo inventory as well. In the Island of Montreal, aka the City, condo apartment listings increased 41% in September. Over the same period, detached listings fell 20%. Out in the suburbs, condo listings fell 33%, and detached listings fell 39% as well. Selling your condo is much more popular in the City, than out in the suburbs. Detached owners in both regions are hanging tight.
RBC cites a few reasons for this shift, including urban flight and investors. During the pandemic, work from home has enabled more people to seek more space in the suburbs. This is leaving urban investors with a softer rental market. A softer rental market applies downward pressure to prices, incentivizing more selling. This ironically often leads to even further selling.
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