Condo sales are tanking. Why aren't asking prices?

Sellers unwilling to trim profits to meet buyers' expectations, experts say

- CLARRIE FEINSTEIN

Condo sales in June fell 29 per cent year over year, according to the Toronto Regional Real Estate Board. Prices, however, only declined by 0.9 per cent.

Condominium sales in downtown Toronto have tanked, but prices have barely budged thanks to overleveraged sellers refusing to take a financial hit by listing their units for tens of thousands of dollars below what they bought it for.

In June condo sales fell a whopping 29 per cent year over year, but prices only declined by 0.9 per cent, according to data from the Toronto Regional Real Estate Board (TRREB). This has led to more inventory on the market with new listings up more than 12 per cent year over year, giving buyers a bounty of options to choose from.

Nearly half of the condos in the market have been listed for 30 days or more — an increase from the typical 18 days — indicating that sellers aren’t meeting buyers’ expectations, said Tom Storey, sales representative with Royal LePage Signature Realty.