New data from CREA reveals that the Housing Price Index (seasonal and actual) for Ontario apartment condos printed a fresh multi-year low in February 2024.
Price are currently 1% lower than the recent lows printed in early 2023, and they are the lowest since Jan 2022.
This news comes on the heels of an Urabanation Report which revealed that unsold new condo inventory in the GTA increased 41 per cent year over year in Q4 2023.
To make matters worse, condo sales have also been sinking:
The buildup inventory and decline in prices will certainly put pressure on pre-construction assignment holders and builders, who are already facing headwinds — stories have began to surface recently of defaults in this sector, along with developers holding back supply for more favourable conditions.
Pre-construction condo investing has become something of a fad in Canada in recent years — often touted as “guarenteed money”. But many of these dreams of wealth have become nightmares as interest rates began to rise in 2022:
In sum: The Ontario condo sector, and particularly near Toronto, is looking weak and tired. Buyer beware.
