07:12 AM EDT, 10/16/2024 (MT Newswires) -- Toronto's condo market isn't good, said Bank of Montreal (BMO).

It might even be the toughest pocket of the Canadian residential real estate market right now, at least looking across larger cities and segments, noted the bank.

Canada's biggest city continues to see a wave of condo supply saturate the market, which has pulled its overall sales-to-new listings ratio down to 35.5, the lowest level since the 2009 recession, stated BMO. A tighter single-detached market is buffering what otherwise looks worse for condos.

Indeed, condo prices in the CMA are now down 7.5% year over year, the worst performance across the major segments/locations that the bank tracks and, outside of the pandemic shutdown, the weakest performance in at least 23 years.

Toronto condos were a hotbed of investor activity, and investors have disappeared, according to the bank as a cause of the problem. Cash flow dynamics still don't make sense at current prices/mortgage rates with population growth likely peaking and rents actually ebbing.

At the same time, expectations of price growth, which can make any bad calculus look feasible, are no longer there to fall back on, it added.