Toronto condo market unlikely to see jolt as conditions vary elsewhere in Canada

For parties vying to form Canada's next federal government, there are few campaign targets as tempting as the Greater Toronto Area.

Experts say the Greater Toronto Area condo market is unlikely to awaken from its lull any time soon even as other major Canadian cities see somewhat more promising demand.

As supply continues to pile up in the GTA, some say affordability is still a key problem holding would-be buyers back from placing their offers, despite the fact that borrowing costs have come down over the past year.

“Sure, the rates have fallen … but it’s still not night and day difference,” said Brendon Cowans, a sales representative for Toronto-based brokerage Property.ca.

“There’s still a lot of things going on where it’s tough for people to get into the market. The dollar is not as strong, the money that people are making hasn’t increased significantly.”

Real estate watchers have described 2024 as a record year for condo completions in the region and Cowans points to more recent figures that show a severe mismatch between available inventory and buyer demand.

Last month saw roughly 1,400 condominium sales throughout the GTA, down 23.5 per cent compared with March 2024, according to data from the Toronto Regional Real Estate Board. That was as nearly 5,500 new condo units hit the market, bringing total active listings in that category to almost 4,700.

The board said the first three months of the year saw condo sales fall by one-fifth compared with the first quarter of last year.

Cowans said buyer preferences are shifting as a result. With so many options out there, he said people want more value if they’re going to opt for condo living over saving for a house.