Price Check: “Now is a great time for buyers to act.” Three realtors on how to game the current condo market

In September, the average price of a Toronto condo unit dropped 3.5 per cent year-over-year to $683,000. Experts predict even steeper price drops this fall and winter, and many prospective homeowners are waiting for further interest rate cuts before making a move. That means there are plenty of deals to be had in the coming months for savvy buyers. Here, three different agents representing three beautiful $1-million condos explain why they were happy to sell for under asking. They also offer tips and tricks for those eager to buy.

Related: How about a waterfront condo, a Baby Point detached or a luxury suite at Yonge and St. Clair?

Wellington Place: A 47th-floor unit overlooking the Rogers Centre

Listed for: $1,099,900 Sold for: $1,073,000 Date sold: Sept. 11, 2024 Bedrooms: 3 Bathrooms: 2 Size: 821 square feet Maintenance fees: $761 a month Parking spot: 1 Real estate agent: Dragan Draganjac

“When we listed in June, I already knew there was too much inventory in the downtown market. A couple of similar units in the same building had been sitting at higher prices, so I tracked them closely. Based on that, I decided to price our unit below the competition to attract interest. And it worked—we had 38 showings, which in today’s climate is fantastic. I know some similar units that weren’t getting any.”

“Over the summer, we received several offers—one formal, the others verbal—but they were just too low to take seriously. Then, in early September, things started to heat up. We had two strong offers come in on the same day. And while we didn’t sell above asking, we managed to close a deal at just $27,000 under the list price. My clients were happy with the result.”

“Things are slow right now, and I try to educate my clients about that early. Today, only about 15 per cent of condos that list are selling, so being upfront is important. I don’t expect any immediate improvement, but as inventory gets absorbed and interest rates drop, we’ll see more buyers returning. That said, the condo market as we knew it at its peak in 2021 won’t be back for at least another two to three years.”

West Don Lands: An open-concept condo with a massive wrap-around terrace

Listed for: $1,165,000 Sold for: $1,100,000 Date sold: Sept. 19, 2024 Bedrooms: 3 Bathrooms: 2 Size: 1,020 square feet Maintenance fees: $927 a month Parking spot: 1 Real estate agent: Olessia Soldatov

“We first listed the condo in November of 2022 at $1.2 million, but with high interest rates, no one was biting. We tried again the following fall and got similar results. We needed a different strategy. With so much stock out there, the unit had to stand out. This summer, we re-listed at $1,165,000, and I decided to showcase the unit’s 500-square-foot deck-like wood terrace—a rarity for Toronto—more prominently in our marketing. We produced a sleek Instagram video that got thousands of views, and I hosted showings during the summer, when buyers could appreciate the outdoor space.”

“Although the showings brought in a lot of traffic, it took more than two months to find the right buyer. I told my clients that all it would take was one person who could see the special value of that terrace, and that’s exactly what happened. In mid-September, we sold the place for $1.1 million: $65,000 under asking, but still a great result given the current market.”

“Despite recent rate cuts, I don’t expect the condo market to see a quick turnaround. Condos are typically slower to improve compared to row houses, semis and detacheds. But that’s why now is a great time for buyers to act—they have plenty of negotiating power with so much inventory available. For me as an agent, these challenges are just part of the job. They force me to be creative.”

East Bayfront: A corner glass box with sublime skyline views

Listed for: $1,140,000 Sold for: $1,040,000 Date sold: Sept. 25, 2024 Bedrooms: 2 Bathrooms: 2 Size: 1,048 square feet Maintenance fees: $1,196 a month Parking spot: 1 Real estate agent: Giulia Aquino
Photography: Jackie Feng

“Tracking comparable homes in the Distillery District and along the lake, I priced this listing competitively at $1,140,000. Buyers these days have the advantage, so I was ready for many offers below asking. Thankfully, the Bank of Canada’s interest rate cut on September 4 gave us some leverage, and we saw steady traffic over the next three weeks.”

“Late in the month, we received an offer below asking. I had prepared my sellers for this possibility, so even though it was $100,000 under our list price, they accepted. In a landscape like this, getting a sale at that price point was still a great result. Sellers need to anticipate the realities of the market, and that’s what we did.”

“The key to avoiding frustration, for both agents and owners, is tempering expectations. Looking ahead, with the Bank of Canada likely to cut rates again on October 23, I expect we’ll see more buyers returning in the spring. But, in the short term, the condo market will remain slow, so it’s about being patient and proactive.”

Are you an agent with tips for house hunters? Send your story to realestate@torontolife.com.