The Greater Toronto Area just hit a record with 11,079 condo units available for sale in July—the highest number ever for any month! Despite this, prices have remained relatively stable, dropping only a modest 3% compared to last year.

So, why haven’t we seen a bigger decline?

Buyer Hesitation:  Demand has significantly dropped. Fewer people are buying condos due to high prices and interest rates, leading to a buildup in inventory.

Sellers Holding Out: Home prices tend to be sticky on the way down. Many sellers prefer to wait rather than drop their prices drastically, hoping that the market will eventually turn around.

 Investor Optimism: Investors believe this is a short-term slowdown and that upcoming interest rate cuts will bring buyers back into the market.

Renting Over Selling: Some condo owners are choosing to rent out their units instead of selling, which helps maintain price levels.

However, if more condo owners start needing to sell and can’t keep their units as rentals, we might see more downward pressure on prices. 📉