"Unprecedented": Terminated condo listings in the GTA surge 643% in six months

An “unprecedented surge” in the number of terminated real estate listings is the latest indication that Toronto’s housing market is slowing down.

According to Strata, there were 380 terminated condo listings across the Greater Toronto Area in January. In June, though, there were 2,822 – a 643% increase in just six months.

“Many sellers are still operating under the impression that this is a seller’s market, so they are listing too high and not seeing any action,” said Alex Hood, a realtor at Strata.ca, in the report.

“At the same time, rising inflation and interest rates are making buyers feel uncertain about the trajectory of the market, which is causing them to be more conservative with their bids.”

The majority of sellers are either biding their time to relist, said Strata agent Anna Wong, or have decided to lease their property instead. This is evidenced by the double-digit increase in condo rental prices since the start of 2022.

Sellers who are willing to negotiate on price, or those looking to offload in the current market, will often relist in a day or two, added Strata agent Galina Sheveleva. Whether the price is higher or lower, though, depends on if an offer date is involved.

“If the seller is still going with an offer date, the new price will usually be lower than the previous one to attract buyer interest,” Wong said in the report.

“If there’s no offer date, the price typically increases because the seller is going with the price they wanted in the first place.”

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As the market shifts to favour the buyer, Sheveleva said it has become increasingly important for sellers to pick the right price from the start. Expectations may need to be lowered in the pursuit of a quick sale, she added.

The shifting market, combined with a near-tripling of condo inventory since the start of 2022, will lead to a dip in the number of terminated listings, Hood said.

“Sellers’ expectations [will] start to align with the realities of the current market.”