Weak condo market means tough choices for potential move-up buyers

“There’s a lack of liquidity in the condo market, so that’s preventing potential move-up buyers from reallocating that money, or buyers from moving up in the market, potentially, because their condos aren’t worth what they expected them to be worth.”

Selling a condo in Toronto? It’s getting harder, agents say

A report released by the Toronto Regional Real Estate Board in May showed condo apartment sales in the Greater Toronto Area were down 21.7% in the first quarter of this year compared with the first three months 2024. Meanwhile, new listings in the quarter were up 25.2% year-over-year for that segment.

Condo sales were down 2.5% last month on a year-over-year basis, roughly in line with overall home sales trends for the region. However, that came after activity in the condo market declined 25.1% in May—far outpacing the drop in sales for other housing types. That month, detached home sales declined 10.6%, townhouses were down 9.8%, and semi-detached homes ticked 0.3% lower from May 2024.

Toronto-area real estate agent Vy Ngo described the condo market as “brutal,” even as activity has started to stabilize when it comes to other properties. “I have multiple condo listings right now. It’s very difficult to sell,” said Ngo, a sales representative with Big City Realty Inc. “It will probably be trending down the rest of the year, (into) next year. It’s going to be awhile until it picks back up.”

Motivated sellers drive Vancouver condo deals

In Greater Vancouver, there were 1,040 sales of condo apartments last month, a 16.5% decrease compared with June 2024. That was a steeper year-over-year decline relative to sales of detached houses, which were down 5.3% from June 2024, while sales of attached houses were up 3.7%.

At the moment, Dinani said the market price for a successful condo sale is ultimately dependent on “who is the most motivated seller in the neighbourhood.”

“Some sellers are open-minded and are in a position where they want to sell and they’re committed to selling, and there are still buyers for those properties,” he said.

“But if you’re in a position where you have your mindset stuck on a certain price or a certain expectation and the market’s not supporting it, we’re just encouraging sellers to hit the brakes and find alternatives. So they’re staying in the home long-term, renting the property out if their financial situation allows them to do so, and then revisiting it.”