More listings and stable prices are giving buyers room to negotiate
Toronto’s condo market has entered a new phase, with increased inventory and moderating prices tilting the balance of power toward buyers.
Toronto’s average condo price fell to $655,231 in September, a 4.3% drop from last year. In the city’s core (416 area), the average was $681,115—down 3.8%. The 905 suburbs saw prices fall 5.4% to $606,275.
According to the Toronto Regional Real Estate Board, these are the lowest condo prices the region has seen in at least four years.
As listings reach multi-year highs and bidding wars become less common, financially prepared homebuyers are finding more opportunities to secure value in the city’s condo segment.
“Even with a 15% down payment on a condo and 20% on a detached home, the affordability gap in Toronto remains significant,” said Leah Zlatkin, licensed mortgage broker and LowestRates.ca expert.
“At today’s average prices, a condo costs about $655,000 compared to roughly $1.35 million for a detached house. A buyer with a five-year fixed rate mortgage would pay approximately 3.89% on an insured condo loan and 3.94% on an uninsured detached mortgage. That works out to an estimated monthly payment of about $2,976.59 for the condo versus $5,645.94 for the detached home. This difference shows why condos are a more attainable option for those looking to enter the market and stay within their budget,” Zlatkin said.
For buyers not planning major life changes, such as expanding their family or relocating, Zlatkin said the math makes a compelling case for condos.
“They allow buyers to stay in the city, build equity, and manage costs responsibly while maintaining financial flexibility,” she said.
Market conditions favour buyers
With listings at multi-year highs and reduced competition, buyers have more negotiating power than they have had in several years.
“This environment makes it possible to pursue larger units, better layouts, or preferred locations that were previously out of reach,” Zlatkin said.
“Buyers can also move at a more deliberate pace, comparing options and focusing on long-term value.”
As affordability improves, more buyers may enter the market, driving up mortgage application volumes. Lenders could see increased demand for pre-approvals and new mortgages, particularly in the condo segment.
Meanwhile, existing condo owners may find it harder to refinance or tap into home equity if their property values have declined. This could limit options for those looking to access cash or restructure their debt.
Caution urged on pre-construction units
Zlatkin cautioned that pre-construction condo purchases now carry added risks.
“Many developers are attempting to assign pre-construction units before closing as financing becomes more difficult and prices adjust,” she said.
These listings may come with uncertain occupancy timelines, smaller unit sizes than expected, and limited visibility into the finished product.
“New builds are often priced higher per square foot than resale properties, making them harder to justify in the current market,” Zlatkin said. For those prioritizing transparency and stability, resale condos typically provide a clearer sense of value.
Balancing fit and financial stability
In today’s market, successful purchases balance lifestyle needs with long-term affordability.
“Selecting a condo that supports daily routines—such as proximity to work, reliable transit access, and nearby amenities—ensures livability remains central to the decision,” Zlatkin said.
Lower entry prices are helping to improve long-term affordability for those planning to stay in their home for several years, build equity, and manage short-term rate or market changes with greater confidence.
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