TD Economics Predicts 10% Drop in GTA Condo Prices in 2025 Amid Rising Inventory and Affordability Strain
Image by: unsplash
According to a recent report by TD Economics, condominium prices in the Greater Toronto Area (GTA) are projected to decline by an additional 10% in 2025. This anticipated drop follows previous declines and is attributed to factors such as increased housing inventory and affordability challenges. The surge in listings is largely driven by homeowners facing mortgage renewals at higher interest rates, prompting some to sell their properties. This influx of listings, combined with sluggish sales, has created a buyer's market, exerting downward pressure on condo prices .
The GTA's condo market is experiencing a significant increase in supply, with inventories surpassing the highs of the last decade. This surge is largely driven by homeowners facing impending mortgage renewals at much higher interest rates compared to five years ago. Many of these homeowners, unable to afford the increased payments, are opting to sell their properties. The current supply would typically take more than five months to sell, indicating a high degree of stress in Canada's biggest property market .
Despite the challenges, there are signs of resilience in certain segments of the market. High-end condominiums in the GTA have shown strength, with sales of units over $3 million remaining stable or increasing compared to previous years. This suggests that while the broader condo market faces headwinds, demand for luxury properties persists. Additionally, federal housing policies, such as changes to mortgage insurance rules, have provided some support, particularly in Western markets .
Read the full article on: REAL ESTATE MAGAZINE
