Condos in Toronto are now sitting on the market for shockingly long as sales tank
Experts have definitely been stressing about the massive slump in both home listings and sales numbers in Toronto, but there is another sign that the the market hasn't been doing so well lately, even as prices remain steady (read: still ridiculously unaffordable).
We now know that a staggering 89 per cent fewer condos traded hands in September of this year compared to the same time in 2021, but what's also interesting is the fact that units are remaining on the market for far longer.
New data from listing site Strata.ca shows that condos listed for sale in the GTA are now sitting around unsold for 3.5 times longer than they were earlier in the year.
While units of all sizes in the region stayed on the market for an average of only eight days back when the landscape was hotter in February, that number has now reached a shocking 28 days, which is a huge stressor for realtors who are used to Toronto's notoriously fervent bidding wars of yore.
Of course, the current lending rates are a huge factor, leading to dwindling demand as people are generally finding themselves in tougher financial straits amid record inflation and sky-high living costs.
Even if one can secure a deal on a home during this lull, the interest rate on their mortgage will likely not make the purchase worth it, tacking on tens of thousands more than the cost would have been just months ago.
Strata does note that despite all this, "it's actually quite remarkable that condo values have remained as stable as they have," attributing prices to "the patience of sellers, who are now waiting longer to accept an offer, on average, than at any point since early 2021."
But, the experts also add that the longer a property hangs around on the market, the more likely owners will have to consider dropping the listing price to try to ensure a sale, or then taking dropping the listing altogether, which is another emerging trend that is worrying stakeholders.
"Days on market (DOM) an have such a profound effect on bidding," the report continues.
"In the downtown core, for instance, a condo starts getting stale at around 10 to 12 DOM. A $2.5 million house in the suburbs, on the other hand, would start getting stale at about 30 to 45 DOM, as the buyer pool is much smaller."
As most listings creep into the more "stale" territory, we'll have to see if and how prices are affected.
Homelife New World Realty Inc., Brokerage via Strata.ca
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