Vancouver faces condo glut while Toronto’s market heats up amid falling prices and increased listings
A surge in Toronto-area home sales is unfolding even as prices continue to soften, signalling a shift that could present new opportunities for clients considering real estate moves.
According to the Toronto Regional Real Estate Board (TRREB), 5,592 homes changed hands in September, marking an 8.5 percent increase from the same month last year and a two percent rise on a seasonally adjusted basis from August.
According to BNN Bloomberg, This uptick in activity arrives as the average selling price dipped 4.7 percent year-over-year to $1,059,377, with the composite benchmark price down 5.5 percent.
However, compared to August, the average price edged up 0.2 percent, hinting at possible stabilization in the market.
TRREB president Elechia Barry-Sproule stated that the Bank of Canada’s September interest rate cut has made monthly mortgage payments more accessible for many households.
The central bank’s move to lower its benchmark rate by a quarter-percentage point to 2.5 percent on September 17 has been “welcome news for homebuyers,” Barry-Sproule said, and is already reflected in improved affordability.
CBC News reported that the market’s momentum is further supported by an 18.9 percent increase in active listings compared to last year, with 29,394 homes available.
New listings reached 19,260, up nearly four percent year-over-year.
Notably, all property types saw higher sales, with semi-detached homes leading at an 11 percent increase, followed by detached houses at 9.6 percent and condos at 7.2 percent. Townhouse transactions were also up 4.4 percent.
TRREB’s chief information officer, Jason Mercer, noted that while sales have improved, they remain below typical levels for the Greater Toronto Area’s population.
As per BNN Bloomberg, Mercer suggested that further interest rate cuts could bring mortgage payments more in line with average incomes, potentially spurring additional sales and related economic activity.
Meanwhile, CBC News reported that the Vancouver market presents a contrasting scenario, with approximately 2,500 newly built condos sitting unsold and empty—double the inventory from last year, according to the Canada Mortgage and Housing Corporation.
Anne McMullin, president and CEO of Urban Development Institute, attributed this glut to soaring construction costs and government policies that have pushed prices beyond the reach of most local residents.
Developers are responding with incentives such as parking stalls, storage lockers, and cash-back offers, but many units remain unclaimed.
