Toronto

Toronto Condo Prices Fall From Peak As Inventory Rises To Highest Level In Years

Toronto real estate is seeing sales bounce, just not in the condo market. Toronto Regional Real Estate Board (TRREB) data shows condo apartment sales had the weakest June in over a decade. This led to prices falling from peak, as inventory went in another direction – hitting the highest level in almost four years.

Greater Toronto Condo Prices Fall From Peak

Toronto condo prices are up from last year, but have fallen from their peak. TRREB’s benchmark (a.k.a. typical) condo price fell to $591,700 in June, up 9.66% from the same month last year. The City of Toronto condo benchmark fell to $622,200, but is still up 8.67% from the same month last year. Both numbers have fallen from their peak prices and growth since the onset of the pandemic.

Toronto Benchmark Condo Price

The price of a “typical” condo apartment in Toronto.

Source: TRREB, Better Dwelling.

The rate of growth peaked a few months ago, and there’s been rapid declaration for Greater Toronto condo apartments. The annual rate of growth peaked in March for both benchmark numbers. Prices are significantly higher than the same month last year, but have also been slipping since the pandemic. Condo benchmarks are down 1.59% from the peak reached in May 2020. According to CREA, prices are down 1.51% when seasonally adjusted, from the peak reached in April.

Toronto Benchmark Condo Price Change

The annual percent change of price, for a “typical” condo apartment in Toronto.

Source: TRREB, Better Dwelling.

The median sale price is lower than both benchmarks, and showing slower growth. The median sale price of a condo across TRREB was $574,300 in June, up 8.56% from the same month last year. In the City, the median sale price was $610,000, up 7.20% over the same period. This means more than half of condo apartments are selling at least 2.94% and 1.96% lower than the benchmarks for TRREB and the City of Toronto, respectively.

Toronto Median Condo Sale Price

The median sale price of a condo apartment in Toronto.

Source: TRREB, Better Dwelling.

The average sale price was higher than the benchmark, but showed a similar size increase to median. TRREB reported an average sale price of $631,705 in June, up 7.0% from the same month last year. The City of Toronto average sale price reached $672,465, up 5.6% from the same month last year. The average sale price is not adjusted for size or quality, so instead is preferred as an indication of dollar flow.

Toronto Average Condo Sale Price

The average sale price of condo apartments in Toronto, and the suburbs.

Source: TRREB, Better Dwelling.

Slowest June For Greater Toronto Condo Sales In A Decade

Greater Toronto real estate sales have picked up, just not in the condo apartment segment – which hit a multi-year low. TRREB reported 1,793 condo apartment sales in June, down 16.3% from the same month last year. The City of Toronto represented 1,287 of those sales, down 13.6% over the same period. This was the fewest condo apartment sales for June in at least a decade. June sales volumes have been on a consistent decline since 2016.

Toronto Condo June Sales

The number of condo apartments sold in the month of June, by year.

Source: TRREB, Better Dwelling.

Greater Toronto Condo Inventory Rises To Highest Level In 4 Years

Despite the lack of sales, a significant number of people have decided to sell their condo apartment. TRREB reported 4,525 new listings for condo apartments in June, up a massive 35.76% from a year before. The City of Toronto represented 3,269 of those sales, up 35.6% over the period. This is the biggest single month surge of new listings since May 2017, and only two months in the past half decade have seen more new listings.

Toronto Condo Sales Vs. New Listings

The number of condo sales, vs newly listed condos across Greater Toronto.

Source: TRREB, Better Dwelling.

Fewer sales and more new listings led total inventory, or active listings, of condos to a multi-year high. TRREB reported 4,320 active listings in June, up 16.5% from the same month last year. The City of Toronto represented 3,070 of those listings, up 20.6% over the same period. This is the highest level for active listings since July 2016, and the sixth consecutive month this number has climbed.

Toronto Active Condo Listings

The number of condo listings available for sale in Toronto.

Source: TRREB, Better Dwelling.

Greater Toronto condo prices have only fallen for a single month, but the reason why is something to look out for. Sales haven’t recovered fully, but inventory is rapidly increasing to relieve pressure on rising prices. This is the trend everyone from large banks to risk advisory firms warned would lead to falling prices. If this continues as the year progresses, as anticipated, prices are likely to soften further.

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8 Comments

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  • Reply
    Marc 2 months ago

    AirBNB disposal?

    • Reply
      Yusef 2 months ago

      I don’t think the units listed for sale are all AirBnBs tbh. Yet at least.

      AirBnB units flooding the market would be about an extra year of housing supply back to market. The problem is no one wants those units, because they were built to be hotel rooms. No one that wants to live in the units wants a couch that faces the kitchen, or a bathroom that opens into the living room.

      Really bad planning from the City of Toronto, allowing units that aren’t actually livable to be built. It’s basically junk supply or student housing for the next decade.

      • Reply
        GTA Landlord 2 months ago

        Dont forget those students aren’t coming back for at least another year.

  • Reply
    OM 2 months ago

    Sign up for an agent that specializes in investor properties in downtown Toronto. I have yet to see one that doesn’t say sell now, and repurchase in a few years after rent non-payments ease.

  • Reply
    Ali 2 months ago

    Condo maintenance fees are as high as rent in some buildings. They built this crap to operate as hotels, not for homeowners. Much better to buy a townhome or semi if you can squeeze the extra few bucks.

    • Reply
      alvi 2 months ago

      Yeah think low rise going to outperform high rise in next 12-18 months

  • Reply
    Ed Kolopolous 2 months ago

    New condo psf lower than resale condo psf. Developers see lower prices in the future as well.

  • Reply
    vipassana 2 months ago

    I don’t commonly comment but I gotta state thanks for the post on this amazing one
    :D.

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