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Your Weekly 411: Calgary Townhomes up 19% | Toronto Office Vacancy up 14.3%| The GTA Condo Market is in Freefall
Published 3 months agoΒ β’Β 2 min read
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The Weekly 411:
Today we're covering
π€ Calgary Townhomes are Heating up
π’ Toronto Office Vacancy Soars to 14.3%
π Toronto Inventory Rises as Sales Dip
π The GTA Condo Market is in Freefall
π₯Edmonton Market Update (It's Hot)
Read Time: 3 minutes
π€ Calgary Townhomes are Heating up
Calgary has the hottest market for townhome price growth in Canada (19% to nearly $475,000).
Townhome sales have been strong in Calgary, growing 13% year-over-year.
The share of townhome resales in Calgary has grown from 12% to 17% in the past five years.
Demand for townhomes is expected to rise if interest rates decrease (although prices would likely rise too).
Single-family detached homes are becoming a less dominant market share (down to 44% from 60% in five years).
π’ Office Toronto Office Vacancy Soars to 14.3%
The availability rate (including sublease space) increased by 19.1% in Q1 2024.
However, the amount of sublease space specifically declined by 311,000 square feet.
Suburban vacancy rates currently sit at 12.8%, lower than downtown's 14.3%.
Why It Matters: Downtown Toronto's office market is struggling to adapt to the changing work landscape. Rising vacancy rates and a shrinking sublease market suggest an oversupply of office space in the core.
π Toronto Inventory Rises as Sales Dip
New listings are up 47% year-over-year.
Unit sales are down 5% year-over-year.
The average home price is down 15% from its peak but still expensive due to rising interest rates.
Condo sales are down 6.5%, indicating fewer first-time homebuyers.
Detached home sales are down 7% as potential buyers wait for rate cuts.
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π The GTA Condo Market is in Freefall
Sales of new condos in the GTHA hit late-1990s lows in Q1 2024, dropping 85% from the 2022 peak and 71% from the 10-year average.
New condo construction starts fell 52% from last year
Unsold units represent 22.8 months of supply, with Toronto's unsold inventory particularly high (30.6 months).
Average new condo prices fell 12% from late 2023, and 17% from last year, now at $1,168 per square foot.
Why It Matters: Although condos are currently undersold, the sharp drop in sales and construction starts points to a potential condo supply shortage in the next 5-10 years. High costs make aligning pricing with market demand difficult, especially for downtown Toronto projects.
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π₯ Edmonton Market Update (It's Hot)
The home prices in the Edmonton area reached an all-time high of $431,387 for April 2024, a 5.6% increase from last year
Detached home average prices increased 5.9% year-over-year and 2.5% month-over-month
Semi-detached home average prices increased 7.4% year-over-year while they declined 0.5% month-over-month
Townhouse average prices increased 13% year-over-year and 4.2% month-over-month
Apartment average prices increased by 4.4% year-over-year to $200,968. Apartment prices are 3.5% higher than last month.
πΌ Image of The Week
They say a picture is worth a thousand words... So, every week, we share one image that describes how we feel about the news that week.
The image depicts townhomes in Calgary on a bright sunny day, with an upward-moving arrow representing the booming real estate market in the city. The vibrant scene is light-filled, emphasizing the growth and prosperity in Alberta's real estate sector.
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