Condo market poised to follow fall of detached home prices, says B.C. realtor

As Canada’s real estate market wrapped up 2022 with price declines, some condo investors are expected to put their properties up for sale within the year as variable mortgage rates continue to rise, a real estate expert said.

Steve Saretsky, a Vancouver realtor, said the market for detached homes has already gone through a “nice” correction in past months, signalling a similar direction for the condo market.

“The market seems to be expecting lower prices (this year). I think that’s where buyer sentiment is right now,” he told Financial Post’s Larysa Harapyn.

Some owners who used to break even on their condo investments are now facing a different reality. With variable mortgage rates up 400 basis points, Saretsky said some investors are now losing money as they are not allowed to increase the rent they charge by more than two per cent under rental restriction laws. He added that while interest rates “might have peaked out for the cycle,” they’ll remain elevated in 2023.