Condo Market Meltdown

The Toronto condo market is experiencing a significant downturn. Condo prices have been declining for five consecutive months, with a whopping 2% drop in September 2024 alone, bringing the benchmark price down to $654,300. This decline is part of a larger double-dip correction, with prices 7.2% lower than they were a year ago.

Sales have also taken a hit, with a 4.4% year-over-year decrease in Q3 2024, and a staggering 81% drop in pre-construction condo sales. The average condo price in the City of Toronto has dipped by 3.3% annually to $713,801.

Experts attribute this meltdown to a combination of factors, including high borrowing costs, oversupply, and tightening market conditions. However, some analysts predict that the market will improve as interest rate cuts take effect, making it easier for renters to transition into homeownership.

It’s a challenging time for condo owners, but buyers may find opportunities in the market meltdown.