After enduring a year of slow sales and halted projects, Toronto’s condo market, the largest in Canada, is displaying signs of recovery. Lower prices lured Tyler Florian to purchase his first property in February, a two-bedroom condo in downtown Toronto’s Fort York area. Florian, a 29-year-old financial planner, had contemplated between renting downtown or saving for a purchase while living with his parents.
Utilizing the First Home Savings Account and the RRSP Home Buyers’ Plan, along with reduced interest rates, Florian successfully acquired his initial property. He noted the favorable conditions for market entry, acknowledging the uncertainty of whether prices have bottomed out.
Realtor Thomas Delespierre observed a shift in Toronto’s condo market from a seller’s to a buyer’s market, where units now linger for months rather than weeks. The Toronto Regional Real Estate Board’s latest data indicates a potential end to the market slump, with a 14.4% year-over-year rise in sales but a 6.4% decline in condo prices.
Jason Mercer, the TRREB’s chief information officer, attributed the increased activity to lower prices and borrowing costs, prompting some sidelined buyers to reenter the market. However, Mercer warned of potential price rebounds due to heightened buyer competition and limited new construction.
Condo markets nationwide have experienced similar downturns, with the Greater Toronto Area witnessing a 25% price drop since its peak in 2022. The Greater Vancouver Area and Calgary have also faced declines, while Montreal has maintained steady growth in condo prices.
The Daniels Corporation, a major Toronto real estate developer, currently has four condo projects underway, down from eight to ten during peak market conditions. Company president Jacob Cohen noted a shift towards larger units over studios, though there remains demand for smaller units among students and young professionals.
The Canada Mortgage and Housing Corporation reported a decline in housing starts in Toronto, particularly in multi-unit projects. Despite this, Pouyan Safapour of Devron Developments expressed cautious optimism, with pre-construction sales for the 1 Marlborough project set to commence.
Developers face challenges in reaching sales thresholds due to a significant drop in investor interest. Cohen emphasized the need to focus on end users rather than investors, signaling a positive change in market dynamics.
Overall, market participants are cautiously optimistic about the condo market’s future outlook, with a focus on adapting to shifting demands and market conditions.