Toronto-area condominium prices dropped to their lowest level in more than four years in July, even as overall home sales posted their strongest July since 2021.

The average condo price fell 9.3% year-over-year to $651,483, according to the Toronto Regional Real Estate Board (TRREB.) That’s the lowest since February 2021, when it was $642,000, The Toronto Star reported.

“The condo market segment has seen real growth in inventory over the last year or so, and sales have not kept up,” Jason Mercer, TRREB’s chief market analyst, told the Star. “That market often sees a lot of first-time homebuyer activity and that is the most interest-rate sensitive group.”

Many Toronto condo new builds did not meet presale targets; meanwhile, several would-be buyers walked away from their purchase commitments, forfeiting millions of dollars worth of deposits.

Overall, the average GTA home price declined 5.5% from a year earlier to $1.05 million, according to TRREB’s latest market report. That level marked a 21% reduction from its February 2022 peak, According to the Star. Townhomes saw a 7.4% year-over-year drop, detached homes fell 5.1%, and semi-detached prices slipped 2.3%.

Despite the price declines, sales rose across all housing types, with semi-detached sales jumping 25.5%, detached up 11.3%, townhomes up 7.9%, and condos up 5.8%. Active listings climbed 26% year-over-year, giving buyers more negotiating power.

Mercer told the Star that sales growth would have to outstrip new listings for several months to reduce total active listings.

“At that point, then we’d see some upward pressure on pricing,” he told his interviewer.

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