Condo sales reach an almost 30 year low in southern Ontario

A recent report from real estate experts at Urbanation Inc. has revealed that the market for condo sales in the GTHA has taken a nosedive unlike anything seen in almost 30 years. 

According to data collected by Urbanation, roughly 3,159 condo units were sold in municipalities in southern Ontario during the first half of 2024.

Using this time last year as a metric, it was discovered that a 57 per cent decline had hit the seller’s market. 

Compared to the 10-year average of condo sales in the GTHA, the numbers are even more dire, as researchers recognized a 72 per cent drop. As a result, representatives within Urbanation have logged the steepest decline in condo sales since 1997.

“The market for new condominiums started 2024 where it ended off in 2023, very slow. After two years of preconstruction sales trending down sharply, construction activity is being hit hard. While anticipated reductions in interest rates in the second half of the year should lead to some improvement in market conditions for new condominiums,” said Shaun Hildebrand, President of Urbanation in an official release this past April. 

Due to a delayed sales pace within the condo market, the current inventory of available condos in the GTHA is now at 25,893 units.

As for the division of these units, most unsold inventory is in pre-construction projects, sitting at 15,157 units, while 9,788 unsold units remain in locations under construction and 948 unsold units are situated in recently completed buildings.

As for the future of condo sales in southern Ontario, Hildebrand noted via an official statement that, “Activity will likely remain subdued as the industry works its way through the current inventory and digests the numerous government policies on housing recently released. “