Toronto is on the cusp of a “historic decline” in sales, according to real estate agency Zillow.
While sales fell 6.5 per cent in April, that’s down from the 5.7 per cent drop recorded in March.
The company said it is concerned that the downturn in sales will force a further decrease in condo prices.
“We continue to see a steep decline in condo sales, which is why we’re concerned that sales could continue to drop further in the future,” Zillows chief economist Scott McVay said.
Sales have declined for four straight months.
In the first nine months of the year, condo sales fell 8.6 per cent compared to the same period in 2015.
Zillow said its analysis of sales data shows that the trend is expected to continue.
It said that the decline is also accelerating in the second half of 2017 as condo sales fall 7.9 per cent, compared to a 3.3 per cent decline in the first half of the calendar year.
Condo sales in Toronto declined by 6.3% in the three months to March, according the Real Estate Board of Greater Toronto.
Real Estate Board president Jim Prentice said the drop in condo demand is the result of a slowdown in new condo construction in Toronto.
“The trend is going to continue,” he said.
“It’s the first quarter and we’ve already seen the first-quarter drop of 10 per cent.”
He added that condo sales were down 15 per cent from the same quarter in 2016.
Toronto condo sales dropped 9.2 per cent between March and April, according a report from Zillower.
As well, the number of listings in Toronto rose by 1.4 per cent over the same time period, Zillovision found.
However, the numbers for detached homes rose 0.3 percentage points over the year to 5.8 per cent.
And in Toronto, single-family homes were up 1.2 percentage points to 2.4 million units, according ZillOW.
Despite the slowdown in sales activity, the average price of a detached home jumped 9.7 percent over the last year to $1.28 million.
There were 7,823 homes listed for sale in Toronto last year, compared with 5,077 in 2016, according data from real estate website Zillocity.
But there are still more than half a million homes in the city that are listed for less than $1 million.
Zillowitz said the trend could continue if prices continue to fall further.
Even with a drop in sales and the increase in listings, there are now nearly 11,000 condo units in the Greater Toronto Area that are sold for less that $1-million, compared for the same amount of time last year.