The city's condo market outlook is continuing to darken
Condominium prices in the Greater Toronto Area (GTA) have fallen to their lowest point in more than four years, according to new data from the Toronto Regional Real Estate Board (TRREB), as the slowdown in the condo market shows no sign of stopping.
The average GTA condo sold for $651,000 in July – down 9.3% from the same month last year, and the weakest price since February 2021, when units averaged $642,000.
The drop outpaces the broader market, where the average selling price across all property types declined 5.5% year-over-year to $1.05 million. According to Toronto Star, prices are now more than 21% lower than the February 2022 market peak.
Smaller units, bigger challenges
The market is absorbing a record number of new condos, as projects sold during the pandemic at ultra-low interest rates reach completion. The result: longer selling times and more room for negotiation.
The crisis is a familiar one for Toronto mortgage brokers. In May, broker Paul Meredith told Canadian Mortgage Professional it wasn’t uncommon to see condos sit for sale for months with little demand.
“I’m seeing condos sitting on the market for six months or even more,” he said. “A lot of it comes down to the desirability of the property, and this goes for not just condos but detached and semis as well. If you have a condo that’s been fully renovated and it’s in a desirable area and is priced right, then it will sell.
“But the problem is that a lot of people who are listing these condos have unrealistic expectations of what those condos should sell for.”
Sales rise but market remains flat
Despite the price drops, GTA condo sales rose 5.8% year-over-year in July, contributing to the region’s best July sales volume since 2021. All housing types posted gains, with semi-detached homes leading at 25.5%.
However, listings increased 26% from a year earlier, keeping conditions favourable for buyers. Properties now spend an average of 41 days on the market, compared with under 15 during the housing peak.
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