GTA condo sales drop 47% as would-be buyers priced out

The suitable condo listings in Toronto's midtown neighbourhood are more than $200,000 above what a family can afford

The suitable condo listings in Toronto's midtown neighbourhood are more than $200,000 above what a family can afford

Condo sales have dropped 47 per cent in 2023 to a 10-year low as high interest rates and high sticker prices price out most people, according to a new report from Urbanation, a research firm specializing in the GTA condo and rental market.

This is not only a 20-something sort of issue. There are lots of folks who want to have the choice to substitute out a backyard and an extra parking spot and to substitute in the convenience of living near transit, reduced time commuting and access to amenities.

Since there's a time lag between new condo pre-sales and construction starts, we're starting to now see that construction activity is beginning to slow down very significantly. This will continue in the coming quarters and ultimately will impede new supply. Fewer units being built spells bad news for affordability, given condos are the most affordable form of home ownership in the GTA by a longshot.

Fewer new condos will also lead to higher prices. If we're not selling as many new condominiums, we won't be building as many new condominiums.

It's not ideal, but at some point in time the market was going to experience a slowdown, which it has. Some projects that are selling well are listing prices closer to summer 2021 levels. it is recommended that anyone who can afford high interest rates and current sale prices buy soon.