A condo buying frenzy swept most major Canadian cities during the peak of the pandemic around 2022. It was a huge seller's market in some places, with not enough inventory to keep up with buyer demand, said Erica Reddy, a real estate agent and analyst in Toronto. Now, the situation has flipped, with sales slowing down in certain areas, according to Reddy.
Condo sales have cooled in the Greater Toronto Area (GTA), with new listings soaring 36.5 per cent in the second quarter compared to last year, while sales dropped nearly 20 per cent over the same period, according to the Toronto Regional Real Estate Board. One luxury Toronto condo recently sold at a whopping $320,000 loss.
What's going on in Canada's condo markets? Reddy spoke with CTV's Your Morning about when is a good time to buy. The information you need to know, sent directly to you: Download the CTV News App State of condo markets Reddy described the "massive skew" in supply and demand in the GTA as a "perfect storm." Investors are struggling to break even and see any cash flow on their properties amid high interest rates, she says, resulting in greater inventory and lower prices.
"You're seeing investors really aren't investing in the marketplace right now, because it's prohibitive for them to," she said. The GTA market saw a larger drop in condo prices, but the situation differed in other areas in Canada. In Quebec , median condo prices were up seven per cent in July compared to the same period last year.
In Vancouv.