When detached homes in Metro Vancouver began dropping in price several years ago, condos seemed immune to the changing market – but not anymore.
New data from Royal LePage shows Metro Vancouver condominiums have sold for an average of $764 per square foot this year, an 8.3 per cent drop in the past seven months.
“Condos seemed almost indestructible,” said Vancouver realtor David Hutchison. “And now we're seeing condos following the detached declining market.”
Two months ago Hutchison listed a one-bedroom condo in the West End for $599,000, a price he was hopeful would nab a happy buyer. That didn't happen.
Instead, the property just sold for $490,000, and the seller agreed to do some renovations before the buyer moves in on Friday.
“In previous markets we probably would have said no and moved onto the next buyer,” said Hutchison.
In contrast to Vancouver, the Royal LePage report shows many other major Canadian cities have seen significant increases in condo prices this year.
- Greater Toronto increased 9.1 per cent year-over-year to $743 per square foot
- Greater Montreal increased 10.3 per cent to $362 per square foot
- Greater Ottawa condos appreciated the most among Canada's largest cities, rising 17.9 per cent year-over-year to $395 per square foot
Western markets haven’t fared as well. The price per square foot for Greater Calgary condos fell 6.7 per cent year-over-year to $313. But Vancouver’s drop was the largest in Canada.
“We had the largest gain, so that was to be expected,” said Hutchison.
While the condo price decreases in Vancouver may be bad news for anyone looking to sell, it’s a bonus for potential buyers. “It’s a much better buying process and more opportunities for these buyers who’ve been waiting a long time to get into the market," Hutchison said.
