Condo prices often move faster than house prices, rising quickly in hot markets and softening sooner when conditions cool. For this month’s condo benchmark prices and sales by city, visit our Market Statistics page.
Why Condo Prices Move Differently
Condos attract a wider mix of buyers: first-time owners, downsizers and investors. When investors step back, whether because rents level off or borrowing costs rise, demand can thin quickly, and prices respond faster than in the detached market.
Investors and the Rental Market
Many Lower Mainland condos are bought as rentals. When rents are rising and vacancies are low, investors compete for units and prices climb. When population growth slows and rents flatten, fewer investors buy and some decide to sell, adding to inventory and creating price reductions.
New Construction and Unsold Inventory
Condo supply arrives in waves. Towers planned years earlier can complete all at once, and when they land in a slower market, developers and presale owners compete for the same buyers. That’s when you’ll see incentives, discounts and reductions on both new and resale condos.
But waves recede. When developers pull back and fewer projects start, a shortage often follows a few years later, firming prices up again.
Presales and Assignments
Buyers who purchased presales at the top of a market sometimes find that newer buyers are paying less. If they can’t assign (resell) their contract at a profit before completion, some list their unit soon after it’s finished, often at a reduced price. These can be some of the best opportunities for buyers in a soft market.
Strata Costs Matter
A condo’s price is only part of its cost. Strata fees, upcoming repairs and special levies all affect value, and a building facing major work may see prices drop for that reason alone.
