Toronto’s housing market has an Achilles heel that could cool prices for months to come

Toronto's housing market is experiencing significant challenges, with condo listings 30% above normal and sales 25% lower than pre-pandemic levels. The sales-to-active listings ratio is 60% below the long-term average, indicating an oversupply. Economists predict that while sales may eventually rise due to interest rate cuts, average prices could continue to decline, particularly for condos, which have already dropped 5% since Q3 2023. The job market's weakness and high unemployment rates further complicate the situation, with potential risks for both supply and demand.