‘Year of the condo’: Waning pandemic could see migration back to big cities

Demand in Canada's condo market could well withstand rising interest rates as the gradual end of the COVID-19 pandemic sees buyers shift back towards big cities.

The gradual recession of the COVID-19 pandemic could see demand for condos in Canada’s big cities hold strong in 2022, real estate experts say, even as rising interest rates may have an overall dampening effect on the country’s housing market.

On Tuesday, the Canadian Real Estate Association (CREA) released national sales figures for February, showing month-to-month growth in the number of units sold from January but an overall decline of eight per cent from the same month a year earlier.

While overall transactions dipped year-over-year in Canada, apartment-style units in major markets largely saw an uptick in sales last month compared to February 2021, according to figures CREA prepared for Global News.

Greater Vancouver, Edmonton, Winnipeg and Hamilton-Burlington all saw apartment sales jump both year-to-year and month-to-month.

Though the Greater Toronto Area saw a modest year-over-year decline in this segment, apartment unit sales in the region jumped 38 per cent month to month.

Realtor Tom Storey with Royal LePage in Toronto tells Global News that he hasn’t seen demand for condos this high since 2017, and that the first few months of the year have aligned with his assessment that 2022 could be the “year of the condo.”

The onset of the COVID-19 pandemic in 2020 saw many condo dwellers leave the city in search of more space and affordable real estate, as work-from-home lifestyles became the norm for white-collar jobs.

Rob Kavcic, senior economist at BMO Capital Markets, tells Global News that the condo market, while never reversing in value, saw growth “stagnate” compared to single- and semi-detached property classes over much of the pandemic.