The market sales data and the reasons for a sudden and strong demand for detached homes pointed to a surge in demand for more spaces by home buyers due to the pandemic. The shift in purchasing motivation to buy detached homes, also played out in the condo market where some buyers become less inclined to buy condos in the cities. This has resulted in a less than ideal demand from buyers for condos. The fall in rental rates in the past 12 months also caused investing in condos less attractive due to negative cash flow from condo investments.
The condo market is more likely to suffer a big drop in their selling prices if too many condo sellers are competing to sell their condos. Whether the fate of the condo market will turn out to suffer some serious setback is yet to be seen in the coming months. But, there are many signs pointing to a market that on the balance of probability, more likely to suffer a crash in condo prices due to the projected inbalance in the high supply of condos for various reasons, and low demand from home buyers who may want to wait on the sideline for better prices.
If you are thinking of buying or selling your home in Richmond or Vancouver, kindly contact James Wong @ 604-721-4817.