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One reason for ongoing slow condo demand is that the segment typically serves first-time buyers or investors seeking to rent units. And condo tenants tend to skew to lower income brackets, which have generally been affected more negatively by the pandemic.
“It’s really a case of that K-shaped recovery everyone has talked about,” Norman adds.
“Many households across the country … have thrived or bounced back quickly, and then there are other households that would have been devastated without government supports.” And they have yet to recover, he further notes.
Edmonton realtor Beverley Hasinoff with Liv Real Estate says condominium demand has been noticeably weaker than other parts of the market this year. In contrast sales for single-family homes, particularly those in the more affordable range, have been booming since spring.
“Homes in the $300,000 to $400,000 price range are still the strongest segment of the market,” she says.
More generally, the fall market has been balanced between buyer demand and supply even as listings have increased.
“Economic pressures may lead to a decrease in demand for housing so, if listings continue to be above average, we may see a shift in the market.”
It’s really wait and see at this point, Hasinoff adds. “The numbers over the next couple of months will set the tone for what we will see in 2021.”
