In the Greater Toronto Area (GTA), a significant shift in the housing market is becoming clear, as the majority of homes and condos are now selling for below the asking price. According to a report from Zoocasa, 70% of homes and 80% of condos in the GTA were sold for less than their listing price in August 2024. This trend highlights a cooling market, a sharp contrast to the bidding wars and skyrocketing prices seen in previous years.
Several factors are driving this change. Rising interest rates and high inflation have made it more difficult for buyers to afford homes at their full listed value. At the same time, many potential buyers are cautious, waiting to see if prices will drop even further. As a result, sellers are adjusting their expectations and are more willing to negotiate on price to make a sale.
For condos in particular, the situation is more pronounced. Nearly 80% of condos in Toronto are selling for less than their asking price. Experts point to an oversupply in the condo market, with many units available and not enough demand to keep prices up. This has created a buyer’s market, where those looking to purchase have more negotiating power than before.
This market shift offers a rare opportunity for buyers to find deals that were previously hard to come by. However, it also indicates that sellers might need to lower their expectations to close deals, particularly in areas where the oversupply of condos and homes is the most significant.
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