Condo sales have taken a big hit in Metro Vancouver and Fraser Valley as buyers battle higher borrowing costs.

There were 10,075 apartments were sold in Metro Vancouver between January and August of 2023, down 17% from the 12,159 units sold during the same period in 2022, according to an Oct. 3 report from Re/Max Canada.

Sales decreased by roughly 10% in the Fraser Valley to just over 3,400 units during the same time period. Abbotsford was the only market to report an increase : 4%.

Prices increased in nearly half of Metro Vancouver markets between January and August when compared with the same time last year, while prices in the Fraser Valley went down by single digits.

“The cost of living is out of control in larger centres and even the most affordable housing now carries a pretty substantial sticker price,” said Christopher Alexander, president of Re/Max Canada, in the report.

“Earnings have not kept pace with housing costs and inflation continues to stretch household budgets thin.”

The report predicts condominium sales will slow down in most major centres in the coming months.

Condominium demand across Canada is a “mixed bag of results,” with recent inflation numbers dampening buying activity, Alexander said.

Sales fell in all markets across the country except for Calgary and Edmonton in the first eight months of 2023, according to the report.

“Higher borrowing costs combined with the minimum qualifying rate of 2%t added by the stress test contributed to lower condominium market share in three of the seven markets, including Greater Vancouver, Fraser Valley and Ottawa,” said the report.

Re/Max : Condo Sales Plummet 17% in Metro Vancouver by Claire Wilson | BIV