new data reveals sharp decline in Toronto condo and housing market amid economic pressures

Recent market data paints a troubling picture for Toronto’s housing market, as both condo and home prices continue to fall under mounting economic strain. In fact, I have even noticed a significant drop in rental rates. Latest data shows that over 80% of condo listings in Toronto sold below asking and home prices sliding steadily since the 2022 peak.

Declining condo and home values along with rising debt, rising homeowner stress and stalled buyer confidence are all contributing to this situation. According to TRREB data, a staggering majority of GTA condos are selling below list price, which means that sellers are increasingly being forced to adjust expectations with buyers, be cautious of further declines and are leaving recent buyers, especially investors in a problematic situation. Further, data from tech company Wahi, from August 2024 also painted a similar picture, showing that 78% condo units were sold below asking.

Further, this comes after TRREB reported 204 power of sale listings in September 2024, up dramatically from just 96 during the same period in 2023, highlighting the severity of the current situation. Further, average monthly power of sale listings have jumped from just 4.5 in 2020 to 83 in 2024, with the year-to-date monthly average standing at 159.

To add to this, a recent report by MNP showed that despite rate cuts by the Bank of Canada, the Consumer Debt Index dropped 85 points, revealing that Canadians continue to feel worsening debt pressure. Further, the Office of the Superintendent of Bankruptcy reported in August that consumer insolvency filings accounted for 95.5% of all insolvency filings, with the majority being proposals rather than full bankruptcies.

In my daily real estate practice, I have encountered a growing number of individuals who bought homes during the 2022 peak finding themselves underwater on their mortgages, with them often not being able to refinance, nor sell without facing significant financial losses. This also comes as developers are scaling back and buyers are hesitating, with signs being of a prolonged correction, rather than a short-term slump.As these reports and data shows, the real estate marketplace is always continuously evolving. Thus, the decision to buy or sell real estate should always take into careful consideration all such factors. Therefore, it is crucial to carefully evaluate your financial situation, long-term goals and local market conditions before making a decision. As a real estate professional with over 20+ years of experience in the industry, I have first-hand witnessed the housing affordability crisis and worked with both buyers and sellers in this market in my every-day practice. If you need expert guidance for your buying and selling needs, please don’t hesitate to reach out to me.