A condo market that seemed so buoyant when it was surging and bubbling up is looking a lot less like it.
The Toronto Real Estate Board reported Thursday that the average price for a detached house in the city fell to $3.65 million in April, down from $3,873,738 in March.
Story continues below advertisement The decline was sharper in the Greater Toronto Area, where the average detached house price dropped by 6.3 per cent to $1.86 million, according to data compiled by Real Estate Market Intelligence.
That was down slightly from the previous month’s 4.4 per cent drop, but the real estate board said that the region’s condo market continues to be robust and the price declines could have been more pronounced had they occurred in the past month.
In fact, the average condo price dropped more than 5 per cent in the first six months of the year.
The median price for condos in Toronto dropped 5.5 per cent.
The condo market has also fallen by 8 per cent this year, the biggest decline since 2006, when the housing bubble burst.
Despite the decline, Toronto is still a major player in the market, accounting for over two-thirds of all homes sold in the GTA.
It’s worth noting that, even after the condo downturn, there were a handful of other markets that saw declines.
As a result, the city’s real estate market may be the biggest in Canada.
But it could be in for another big hit.
“Toronto has never seen such a steep decline in prices, and that’s really sad,” said Mark MacKinnon, chief executive officer of real estate brokerage Cushman & Wolfson.
“We’ve seen many other cities and provinces around the world go through similar market turmoil, and Toronto’s not the only one.
But the reality is that Toronto is an incredibly important city, and the condo market is a key part of its economy.
Toronto is still an important centre of Canada’s economy, but it has fallen off a cliff.”
The condo boom has been one of the biggest economic and demographic developments of the last decade.
In its first two years, it generated $30-billion in annual economic activity for the province.
The number of homes in Toronto soared from 2.2 million in 2010 to 4.7 million in 2015.
That’s almost twice as many as the number of jobs in the entire country, according the Real Estate Council of Greater Toronto.
The boom also spurred the creation of thousands of new jobs, as more people sought out the city as a destination for employment.
In the decade since, however, the condo boom is faltering.
According to the Real Capital Institute, the number a year ago of homes sold fell from 4.3 million to 2.4 million.
And condo sales have dropped to their lowest levels since 2008, when they reached a record high of 6.9 million.
“In the past 10 years, the Toronto condo market experienced a lot of bubbles, and they have all gone,” said Rob McBride, the chief economist for Toronto-Dominion Bank.
“The condo bubble peaked and it popped.
And the bubble didn’t burst.
Now it’s starting to slow down.
There are other reasons, though, for the condo bubble to have failed, Mr. McBride said.
One is the housing crash, which hit the city hard, causing the biggest exodus of people since the Second World War.
The other is that, while condo prices have risen sharply in the last few years, they have been declining for most of that time, said Mr. MacKamm.
Last week, the provincial government announced it was ending its plan to sell off condos to foreign buyers.
That’s good news for the city, but there are signs that condo prices could dip even further.
Real Estate Market Insider: The city’s condo boom could be on the brink.
Read more:Toronto condo market could be falling off a precipice, analysts say, as condo buyers look to buy