As borrowing costs remained high in the second quarter of 2024, condominium apartment sales were down noticeably in comparison to the second quarter of last year, says a recent report by the Toronto Regional Real Estate Board (TRREB).
Over the same period, condo apartment listings were up, however, the average condo apartment selling price was down slightly year-over-year.
In the second quarter of 2024, condo apartment sales amounted to 5,474, which is down 19.8 per cent in comparison to 6,824 sales in Q2 2023.
In terms of new listings, they were up by 36.5 per cent year-over-year to 16,917. Growth in listings is outpacing sales, which means standing inventory, as measured by active listings at quarter-end, remains elevated.
“The condo market is very sensitive to interest rates, given that this segment is a traditional entry point into homeownership. With monthly payments remaining high and average rents edging lower over the past year, many would-be buyers remain on the sidelines. However, over the next year, an improving affordability picture will see a growing number of first-time buyers enter the condo market,” said TRREB president Jennifer Pearce.
The average condo apartment selling price in the second quarter of 2024 was $729,005 which is down by 1.2 per cent in comparison to $737,925 in the second quarter of last year. In the City of Toronto, the average selling price was $765,963 – down by 0.5 per cent compared to Q2 2023.
“Despite a much better supplied condo market over the past year, selling prices have remained relatively flat, especially in Toronto. This suggests that sellers are holding relatively firm on their listing prices. This may be in anticipation of improved market conditions as borrowing costs continue to trend lower this year and next,” said TRREB chief market analyst, Jason Mercer.
