GTA condo sales fall more than 35% year-over-year as prices continue to rise

Jul 28 2022, 7:16 pm

Falling sales and rising prices show that the Greater Toronto Area condo market is following a similar trend to its housing counterpart.

The Toronto Regional Real Estate Board’s latest Condo Market Report shows that only 5,687 condos changed hands across the GTA in Q2 2022, a 35.2% annual decline.

New listings remained relatively flat in the second quarter, dropping just 0.9% year-over-year to 14,316. With fewer sales, active listings ended the quarter up 27.5% to 5,210.

“While some would-be first-time buyers have temporarily focused on renting as they sit on the sidelines, the less expensive entry prices of condos versus freehold homes has provided an alternative option for purchasers looking to mitigate the impact of higher borrowing costs,” said Toronto Regional Real Estate Board (TRREB) President Kevin Crigger.

“The lower average price point in the condo segment has performed better than many low-rise segments of the market since the onset of the Bank of Canada rate hikes in the spring.”

The average selling price of a condo in the GTA rose 12.2% year-over-year, reaching $769,999 in Q2 2022.

Although prices were higher in the City of Toronto, at $795,560, the strongest price growth was seen in the surrounding suburbs. At $673,051, Peel Region posted a 18.7% price increase, while Durham Region saw prices jump 25.5% to $645,327.

“Condo market conditions became more balanced in the second quarter, with buyers benefitting from substantially more choice,” said TRREB Chief Market Analyst Jason Mercer.

“However, the pace of annual average price growth remained above the rate of inflation, particularly in areas outside of Toronto that are offering attractive price points.”

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