FOMO Fuels Jump in New Condo in Major Canadian Cities
Market Report Video - By The Globe and Mail
New condo sales are rebounding, as houses increasingly become more unaffordable and buyers race for FOMO on the booming real estate market. In the Vancouver region, there were 4,293 new condo sales in Q1 2021, more than double y-o-y (Altus).
In Calgary, sales increased 66% to 407 units, and in Hamilton, sales tripled to 515 units. In the Toronto region, there were 5,680 sales, which was 14% lower than last year when the market was booming.
While the rapid rise in home prices has shut out many, it has made many keen to get in now in case of growth at the same rate.
The home price index, which adjusts for price volatility 30% – 40% higher in many parts of Ontario, the Maritimes, and BC.
The excitement in the market appears to be encouraging investors and buyers to come back, and in turn, encouraging developers to release more products.
The high prices have sent Toronto investors to cheaper markets such as Hamilton and London, Ontario, Calgary, and Montreal.
