A condo buying frenzy swept most major Canadian cities during the peak of the pandemic around 2022.

It was a huge seller's market in some places, with not enough inventory to keep up with buyer demand, said Erica Reddy, a real estate agent and analyst in Toronto.

Now, the situation has flipped, with sales slowing down in certain areas, according to Reddy.

have cooled in the Greater Toronto Area (GTA), with new listings soaring 36.5 per cent in the second quarter compared to last year, while sales dropped nearly 20 per cent over the same period, according to the Toronto Regional Real Estate Board.

One luxury recently sold at a whopping $320,000 loss.

What's going on in Canada's condo markets? Reddy spoke with CTV's Your Morning about when is a good time to buy.

State of condo markets

Reddy described the "massive skew" in supply and demand in the GTA as a "perfect storm."

Investors are struggling to break even and see any cash flow on their properties amid high interest rates, she says, resulting in greater inventory and lower prices.

"You're seeing investors really aren't investing in the marketplace right now, because it's prohibitive for them to," she said.

The GTA market saw a larger drop in condo prices, but the situation differed in other areas in Canada.

In , median condo prices were up seven per cent in July compared to the same period last year.

In , the benchmark price fell slightly at 0.3 per cent in July compared to the same period last year.

The average apartment price in was up 4.9 per cent in July year-over-year, while the benchmark price in rose 17 per cent year-over-year.

In , the median price for apartment units changed little, up only 0.8 per cent year-over-year in the second quarter of 2024.

In and surrounding markets, average condo prices were up nine per cent over last June. July figures weren't available yet from the Winnipeg Regional Real Estate Board.

Is it better to buy or rent right now?

With increased supply outpacing demand, prices are lower in some markets, which gives buyers an edge, Reddy said.

It could be time to take advantage of the buyer's market.

"If you're looking at real estate from a long-term time horizon, it's a phenomenal investment," Reddy said.

Reddy says buyers may also find they don't have to rush into snapping up property, unlike a few years ago, when real estate prices and demand skyrocketed.

"Now it's a much more manageable market," she explained. "You've got time, you've got options and you've got lots of product to shop."

For those who are not sure whether they should buy a condo, she said they can always rent, then buy when they feel the time is right.

For the full interview, watch the video above.