Why condo sellers are drowning

Desperate sellers risk going underwater on their mortgages if they drop prices - but no one is buying. What are they to do?

- CLARRIE FEINSTEIN

Jeff Steinman had heard it before- the buyer loved his condo but wasn't in a rush to purchase. It was the fourth showing for his modern one-bedroom apartment in the heart of downtown Toronto since listing the property in April.

Even after dropping the price by $50,000, Steinman has had zero offers, which is highly unusual for an apartment on Charlotte Street, close to Spadina Avenue and Adelaide Street West, especially in a 13-storey boutique building close to theatres, TIFF Bell Lightbox, sports stadiums and multiple transit lines.

"Everyone that's seen the apartment can't say enough about how beautiful the place is," said Steinman, who's done everything he can to make it stand out, from lowering the price to printing signs and advertising in dozens of real estate groups on social media. "I'm frustrated and confused about why it hasn't sold."

Steinman's home is one of the more than 6,000 Toronto condo listings on the market, as owners struggle to sell in a climate where buyers are waiting for interest rates and prices to drop further than they have.

The Bank of Canada's key rate cut in June did little to pull buyers off the sidelines, and despite last month's condo sales falling by a whopping 29 per cent year-over-year 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 6,201 active condo listings in June and 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 on 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, experts say.