The Toronto condo market is facing tough times, with a recent sale of a luxury condo in the entertainment district highlighting the challenges that sellers are currently facing. The 37th-floor unit sold for a $320,000 loss, showcasing the difficulties that many condo owners are experiencing in the current market. Realtors and observers are noting that the market hasn’t been this tough in decades, with a combination of factors making it increasingly difficult for sellers to make a profit.
Realtor Rebecca Romeo, who listed the three-bedroom condo, explained that the property had faced several failed attempts at selling before finally being purchased for $1.23 million. This price was significantly lower than the $1.55 million that the owner had paid for it in 2021, representing a 21% decrease in value. Despite the loss, the seller was happy with the deal as it allowed him to move his equity elsewhere and start a new chapter in his life.
The Greater Toronto Area is currently experiencing a glut of condos for sale, with many owners finding it challenging to attract buyers. A recent report by Urbanation and CIBC titled „Challenging Times“ highlighted the recessionary territory that the condo market is in, with conditions deteriorating to levels not seen in decades. High prices, higher interest rates, and reluctance from sellers to lower prices are all contributing to the standstill in the market.
Realtor Ralph Fox of Fox Marin and Associates noted that properties are sitting on the market for longer periods, with inventory levels starting to build up on the condo side. While many owners are holding onto their properties in hopes of a market turnaround, the slow market is having a knock-on effect on new condo projects getting started. This could lead to a decrease in the number of units coming onto the market in the future, potentially driving up prices and impacting affordability.
In contrast, the low-rise market in Toronto is still seeing competition among buyers, with properties like a Leslieville detached home selling for well above the asking price. Realtor Teuta Guci pointed out that buyers are cautious and waiting for a potential cut to interest rates, but she advised that they should act now as prices are likely to continue rising.
Overall, the Toronto condo market is facing significant challenges, with sellers struggling to attract buyers and make a profit. While the low-rise market remains competitive, the condo market is in a tough spot with no immediate relief in sight. Buyers and sellers alike will need to navigate these challenging times carefully to make the most of their investments in Toronto’s real estate market.