Slumping sales and prices are adding to the woes of GTA condo owners hoping to sell their property
Average condo prices in the Greater Toronto Area (GTA) continued to plunge last month as sales nosedived and supply flooded the market – and sellers are making steep cuts to original listed prices as they attempt to offload their properties.
Condo sales were down by a combined 25.1% in the city centre 416 and surrounding 905 area in May, contributing to a year-over-year dip of 6.4% in condo prices across the GTA.
That slide arrived amid a continuing overall slump in the city’s once-red-hot condo market as investors flee the space and rental and purchase demand dries up.
Homeowners and landlords seeking to get rid of their condo are having a tough time in the current climate. “What we’ve found is if you’re selling a condo in this market, it’s been quite a challenge,” Taz Zaide (pictured top), a mortgage agent with 6ix Mortgage Group, told Canadian Mortgage Professional.
“A lot of people are [listing] them on price ranges that they expect but aren’t getting any [offers] – so they have to further cut their listing price just to get more traction.”
Move-up buyers face big challenges selling their home
A dearth of buyers means thousands of condos are sitting unwanted on the market even with a flood of new inventory set for completion before the end of this year, potentially meaning even more pressure will come to bear on prices in the city.
Plenty of hopeful homebuyers are also being left in the lurch because they need to sell their condo before they can move to a new property but are finding a sale impossible at present.
“The listings for condos are sitting quite a bit in the market and we’ve had instances where a lot of clients are buying and selling, and if they’re selling a condo to upsize, they’re finding that they’re having a lot of trouble figuring out what the price should be for that condo because they’re expecting more than they should be,” Zaide said.
“And so they’re not getting as many showings as they should be as well. So it sits there in the market for quite some time.”
Vancouver's condo market has over 2,000 unsold units, but it's in better shape than Toronto's 20,000+ vacant units. Anthony Zhang of DLC Clear Trust Mortgages expects turbulence to ease and sees a positive long-term outlook. https://t.co/R791jpWtNk
— Canadian Mortgage Professional Magazine (@CMPmagazine) June 25, 2025
When will Toronto’s condo market rebound?
Lower prices mean some relief for hopeful buyers who found themselves priced out of the market in recent years or condo investors who want to snap up a property for their portfolio.
But unsurprisingly, a deep chill has also settled over the condo market for investors because of the well-publicized woes of owners in that space over the last year.
“The main thing is that the maintenance fees are still going up for those condos even though the prices are down,” Zaide said.
“So a lot of those people would rather just not have to pay $1,000 a month putting maintenance fees on some of these condos, where they can just take that and pay towards a mortgage in the form of a slightly higher purchase price – instead of buying a condo, let’s say buying a semi-detached or even a townhouse.”
Even many buyers who now find themselves in a position to purchase are taking a “pretty cautious” approach to the market, Zaide said, as they wait to see whether prices and rates will tumble even further.
Those buyers are waiting for the first sign that prices could be about to rebound before they enter the market, although Zaide said that’s not necessarily the right approach.
They might not get a better opportunity than the current market to make their move, he said, with sellers’ desperation a rarity for the Toronto real estate space.
“I think there’s no good time to jump in more than now, especially to try to buy a condo, because I do feel it’s bottomed out quite a bit on the condo side,” he said, “and a lot of sellers of condos are desperate to just get rid of them because they’re sitting in the market at certain price points.
“I’ve noticed a lot of these condos are just being relisted at lower price points multiple times because they’re not selling for the amount that the sellers are hoping for.”
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