As Toronto’s housing market navigates a period of persistent price depreciation, a critical disconnect is emerging between market activity and property valuations. Former Appraisal Institute of Canada president Terry Dowle warns that while transaction volumes may show modest upticks, actual market values remain under pressure, particularly within the softening condo sector. For GTA buyers and mortgage brokers, this ‘thin data’ environment creates significant risk. Dowle advises brokers to engage appraisers early—before papering files—to avoid costly restarts caused by low valuations. Because current market conditions are creating a ‘holding pattern’ that may last over a year, proactive communication is essential. Providing appraisers with specific data on permitted renovations or off-market comparables can help bridge the gap, but buyers should prepare for continued volatility. For a deeper dive into how these appraisal hurdles are impacting mortgage approvals, read the full report at Canadian Mortgage Professional.
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