Greater Toronto Toronto Area condominium prices nosedived as listings spiked in the second quarter, says a new Toronto Regional Real Estate Board report.

Condo sales fell 19.8% to 5,474 in the second quarter of 2024 from 6,824 a year earlier. However, new listings soared 36.5% year-over-year to 16,197 as existing inventory remained elevated.

TRREB attributed the discrepancy to high mortgage costs.

“The condo market is very sensitive to interest rates, given that this segment is a traditional entry point into homeownership,” said TRREB President Jennifer Pearce in a news release. “With monthly payments remaining high and average rents edging lower over the past year, many would-be buyers remain on the sidelines.”

However, over the next year, an improving affordability picture will see a growing number of first-time buyers enter the condo market,” said TRREB President Jennifer Pearce.

The average condo prices for the region and Toronto remained on par with second-quarter 2023 levels. Toronto slightly outperformed its suburbs.

The GTA average price dropped 1.2% year-over-year to $729,005 from $737,925. Within Toronto’s city limits, the average price dipped 0.5% to $765,963.

“Despite a much better supplied condo market over the past year, selling prices have remained relatively flat, especially in Toronto,” said said TRREB Chief Market Analyst Jason Mercer. “This suggests that sellers are holding relatively firm on their listing prices. This may be in anticipation of improved market conditions as borrowing costs continue to trend lower this year and next.”

The Bank of Canada has implemented two overnight lending-rate cuts this summer, reducing its prime rate to 4.5%

Over the next year, “an improving affordability picture” will bring more first-time buyers into the market, said Pearce.