Kondo marketplace is slowing down. The place are all consumers?

In the largest cities of Canada, the condo market is showing no signs of the recession disappearing. Experts say the market has moved considerably in the last few months, as the supply and demand disappears.

“We are very high in the recession in the condo market,” said Robert Kavik, senior economist at Bank of Montreal.

The recession focuses in Toronto and Southern Ontario, and to some extent to Vancouver, he explained. Other markets such as Edmonton and Montreal are working better for now.

“We are probably going to proceed for a few years in this soft type of environment,” he said.

Cando sales in Greater Toronto region fell by a decline of year-by-year with a decline of 30 percent in April, According to Toronto Regional Real Estate BoardThe average price of $ 678,048 was 6.8 percent lower than the same period a year ago, and is 16.5 percent below the market peak in 2022.

The decline in price in London and Barry has also been stator.

In Vancouver, Kondo sales slipped 20 percent in April compared to 2024, According to Greater Vancouver realtorsThe benchmark price was $ 762,800, the year -after -year decline of 1.8 percent and a decline of nine percent in the last three years.

The store may have more pressure for the sector, although some markets may be harder than others. TD bank economists predict This year the GTA Kondo resale market will be likely to fall by 10 percent.

Rising supply

Real estate agent Sean Miller said in Toronto, “Unusual condoses are collecting. It may take weeks now for units that were sold once in days.

“We have found seven months of inventory, which is crazy, and we don’t have buyers to absorb it,” he said. “We have not seen so much inventory in 20 years.”

With a lot of properties to choose, Miller said that buyers are looking for deals and are able to buy their time. Sellers have to modify their expectations, and now overheet can not catch up heavy market prices from a few years ago.

“If you are a seller and you have nothing that is amazing, it’s difficult and you have become realistic,” he said.

A record wave of newly created condos is also adding to the supply. In the Greater Toronto Hamilton region alone, 29,800 units were completed last year, according to this UrbanizationWith more online coming in 2025.

“Now the supply to the completion of everything we are seeing is actually a reflection of the demand status existing two or three years ago,” Kavik said. “It is no longer present.”

Newly built in the Vancouver region, the number of unusold condo units is expected to jump up to 60 percent by the end of the year, predicting realty firm Renee & Associates.

Steve Sartsky, a reaaltar with Okland Realty in Vancouver, says there is an sea of ​​inventory in areas such as Surrey and Bernbai.

“This is the place where you have made too much investment and speculation, a lot of price increase, and now people are looking to get out.”

Demand to disappear

Experts are calling Kondo Bazaar a buyer’s market – the issue is that many buyers have disappeared.

For the first time homebuits, who are waiting for the opportunity to come in the market, are still getting prices out of reach.

“Strength has improved a minor manner, but it is still very ineffective for most people living here,” Saraski said.

They are known as end users or owners, who are actually looking for resale condos to live. Many people say that the size and layouts of the available units leave a lot to be desired. Condos in Toronto, with an average floor plan of 650 sq ft, is often known as “Shobox in the sky”.

• Have you knocked the walls to make a small Kondo unit bigger? We want to hear from you! Email ask@cbc.c.Ca With your story.

Kavik said that the imbalance is the result of what was the easiest and most affordable way for the builders: Cranking the projects with a lot of small units, which the investors liked because they just wanted to hire or fly them quickly.

“We need large units with demographic two or three bedrooms, and in a lot of cases, the backyard,” he said.

For years, investors were some of the largest buyers of pre-building condos, with extremely low interest rates and greed for a stable stream of tenants.

Now, as the federal policy maker cap immigration, the population growth is falling quickly. Combined with units of historically high number of objective-made rental, many cities are coming down after standing growth in rent years.

Asking an average of a-bedroom Kondo in Toronto fell nearly six percent in April, and Vancouver fell more than four percent, according to it Rent.,

This is good news for those who rent. But for investors, interest rates are very high, and the cost of carrying property in the form of rent is less attractive.

“Investors are originally from the market, because instead of expectations of price rise, they have to look at things like cash flow … it just does not make sense on the cost of borrowing four percent,” Kavik said.

Thousands of investors also face standing damage, as the Pressley Kondos purchased a few years ago are less than their basic value. In Vancouver, Seratski said, “There are projects that are pre-probed for $ 2,500 per sq ft, but the evaluation is now coming in $ 1,900 per sq ft.

He said, “A cohabitation of investors will be intimidated for a long time. They are about to say, you know what? I am not buying an investment Kondo again,” he said. “It is probably healthy in the long run. You get a little imbalance and you get more end users in the market.”

Real estate agent, Miller, said that good -priced units are still selling with a liveable floor plan. But the trade war with the US is forcing many buyers to make large shopping, as unemployment ticks and consumer trust are unstable.

Miller said, “A small interest rate reduction in June can make things a little better, but then something else can change that feeling,” Miller said.

“We are currently at this time of uncertainty where we have received to ride it.”