Condo sales in Toronto represent a significant and dynamic segment of the city's real estate market, offering a primary entry point for first-time buyers and investors. The market has experienced a period of price adjustment, with the median asking price for condos at $638,000 in 2025, representing a year-over-year decline of about 7%. Recent data shows signs of increased sales activity, with 1,054 units sold in a recent month, a 14.4% increase year-over-year, even as average prices have softened. Understanding the current conditions, pricing trends, and inventory levels is crucial for anyone considering a purchase in Canada's largest condo market.
Current Market Conditions and Pricing
The median asking price for condos in Toronto is $638,000, which reflects a decrease of approximately 7% compared to the previous year. This price adjustment has created a more approachable entry point, particularly for first-time buyers. The average selling price for condominium apartments in the second quarter of 2026 was $634,972 across the Greater Toronto Area, a 7.5% decline from the $686,387 average seen in Q2 2025. Within the City of Toronto specifically, the average selling price during that quarter was $667,916. This period of softer pricing has coincided with a shift from a seller's market to a buyer's market, where properties can remain listed for four to six months, granting purchasers more choice and negotiating power on price.
Sales activity has shown recent momentum despite the price declines. In a recent month, 1,054 condo units were sold in the city, marking a 14.4% increase compared to the same period the year before. For the second quarter of 2026, the Toronto Regional Real Estate Board reported 4,783 condominium apartment sales, an increase of 8.8% from the 4,395 sales in Q2 2025. This rebound in sales transactions is attributed to improved affordability stemming from lower selling prices and reduced borrowing costs, which have encouraged some buyers to re-enter the marketplace. Real estate analysts suggest that if sales continue to improve relative to the available inventory, the annual rate of price decline should diminish, potentially setting the stage for renewed price growth in 2027.
Inventory levels are a critical factor influencing market conditions. At present, there are over 7,200 condos actively listed on the Toronto MLS® system, providing a wide selection across the city's 143 neighbourhoods. However, new listings are declining. In Q2 2026, new condominium apartment listings totalled 14,042, a 19.0% decrease year-over-year. Active listings at the end of that quarter were 8,061 units, down 15.4% compared to the same period last year. This tightening of available inventory, combined with rising sales, indicates a gradual move towards more balanced market conditions, though buyers still benefit from ample choice. The significant inventory of newly completed units also impacts the market, with a record 4,295 condos completed and unsold in the first quarter of a recent year.
Historical Price Trends and Market Cycle
Toronto's condo market has undergone a notable correction following a period of peak prices. Condo prices in the Greater Toronto Area peaked in 2022 and have since dropped by about 25%. This decline is part of a broader national trend, with similar corrections observed in other major markets. For instance, condo prices in the Greater Vancouver Area peaked in fall 2023 and have since fallen by about 10%. In Calgary, prices peaked in September 2024 and have dropped 10%, while Montreal has experienced steadier, moderate growth over the past three years. The Toronto correction represents a significant market adjustment that has reshaped affordability and buyer behaviour across the region.
The downturn was particularly pronounced in the new construction segment, where sales for new projects fell 52% year-over-year in the first quarter of a recent year to a 35-year low. During that same quarter, for the first time in three decades, zero new condo projects were launched, signalling a market standstill. This sales collapse was driven by higher interest rates, a sluggish economy, and economic uncertainty over a five-year slump. The price gap between new and resale condos widened considerably, with the average cost per square foot of a new condo reaching $1,189 compared to an average resale price of $859 per square foot, a 38% difference. This disparity made resale units far more attractive to cost-conscious buyers.
Looking forward, the supply pipeline for new condos is expected to contract sharply, which analysts believe will help stabilize the market. Completions are projected to fall from 29,924 units in 2024 to 29,616 in 2025, and then drop significantly to 21,850 units in 2026. Forecasts suggest completions could continue declining throughout the decade to around 2,000 units in 2029. This represents the most substantial drop in new supply the market has experienced and should reduce the inventory overhang. Furthermore, policy measures like Ontario's new HST rebate, estimated to cut new condo prices by an average of about $100,000, are expected to narrow the price gap with the resale market to a more historical range of 10% to 15%.
Key Factors Influencing the Toronto Condo Market
Several interconnected factors are currently shaping the trajectory of condo sales in Toronto. Affordability remains the central theme, with lower prices and borrowing costs being the primary drivers bringing buyers back into the market. Government programs like the First Home Savings Account and the RRSP Home Buyers' Plan also assist first-time purchasers in accumulating a down payment. Demographic trends continue to support long-term demand, as immigration growth and a preference for urban living sustain interest in condo living. Furthermore, condos offer a more accessible path to homeownership compared to detached homes, which remain out of reach for many in the city.
Development activity and inventory management are critical market influences. Toronto continues to lead North America in urban growth, with 240 active construction cranes in 2023, many dedicated to condo projects. However, developers have responded to market weakness by cancelling projects and converting some to purpose-built rental. Since the start of 2024, 11,424 condo units were cancelled, with just over 4,000 converted to rental. Some developers are also opting to rent out unsold condo units, a strategy newly enabled by the updated HST rebate rules. The mix of unit types in new developments has also evolved, with a shift away from studios toward more one-bedroom, one-bedroom-plus-den, and two-bedroom layouts to meet buyer preferences for more functional space.
The relationship between the sales and rental markets is another important dynamic. While the sales market has softened, Toronto's rental market has seen strong demand, with rental prices staying competitive as supply grows. This has led some owners to choose renting over selling, especially if they cannot accept a loss on their initial purchase price. The presence of a robust rental market provides an alternative exit strategy for investors and can absorb some of the newly completed inventory. However, reports also indicate that many rental units are sitting empty despite high asking rents, suggesting some friction in the rental market as well. This interaction between investment, ownership, and rental continues to define the condo landscape.
Neighbourhood and Building Selection
Toronto's condo market is not monolithic. It varies significantly across the city's 143 unique neighbourhoods. From luxury towers in Yorkville and downtown high-rises to boutique lofts in Liberty Village and mid-rise buildings in emerging areas, each community offers a distinct lifestyle, amenity set, and price point. Platforms like Condos.ca provide building ratings, amenities breakdowns, and reviews to help buyers compare communities. The concept of the "20-minute city," where residents can meet most daily needs within a short walk or transit ride, is increasingly shaping development, with condos clustering around transit hubs and major corridors to maximize livability and minimize commutes.
When searching for a condo, buyers have access to thousands of active MLS® listings, which are refreshed multiple times per day on major real estate portals. These listings range from pre-construction developments to resale units in established buildings. Major developers like Tridel maintain updated listings of their available units, including floor plans and prices, for both move-in-ready and pre-construction condos. The wide selection allows buyers to filter searches by priority factors such as location, price, size, bedroom count, and specific amenities. This level of choice is particularly pronounced in the current buyer's market, where competition for any single unit is less intense.
Prospective buyers should consider several practical steps during their search. It is essential to review recent sales data for the specific building and neighbourhood to understand true market value. Visiting properties in person is crucial to assess layout, finishes, building condition, and noise levels. Researching the condo corporation's financial health, reserve fund status, and any pending special assessments is a critical due diligence step for resale units. For pre-construction purchases, investigating the developer's track record for quality and timely delivery is paramount. Engaging a licensed real estate professional who specializes in the Toronto condo market can provide invaluable guidance through this complex process.
Common Challenges and Considerations for Buyers
Purchasing a condo in Toronto involves addressing several common challenges. The potential for financial loss is a primary concern, as some owners have found their units selling for significantly less than their purchase price, with similar units in some areas selling in the low $600,000s. This risk is heightened in a market where prices have corrected, and sellers may need to reduce their asking price substantially to attract offers. Some sellers, unwilling to accept a loss, have opted to rent their units instead, turning to the rental market as a stopgap or longer-term solution. This decision is influenced by the strength of the rental market, where some owners find renting is going well enough to consider it a long-term strategy.
Market timing and price uncertainty present another significant challenge. While lower prices create opportunity, buyers and analysts alike question whether the market has truly reached its bottom. The sentiment that it is a good time to buy is tempered by the acknowledgment that future price movements are uncertain. The shift from a fast-moving seller's market, where units sold in less than two weeks, to a slower buyer's market requires patience and a willingness to negotiate. Buyers must be prepared for a process where condos can sit on the market for extended periods, and they should avoid feeling pressured to overpay even in a more balanced environment.
Specific risks are associated with different purchase types. For new construction, buyers face the possibility of project cancellations or delays, as seen with the 11,424 units cancelled since the start of 2024. The significant price gap between new and resale condos also means new units may not appraise at their purchase price by the time of closing. For all condo purchases, understanding the monthly maintenance fees and what they cover is essential, as these fees impact overall affordability. Furthermore, the prevalence of smaller unit designs, though evolving, means buyers must carefully evaluate whether a studio or one-bedroom layout will meet their long-term space needs. Conducting thorough due diligence on the building's rules, financials, and community dynamics is non-negotiable.
Future Outlook for Toronto Condo Sales
The future trajectory of Toronto condo sales hinges on the interaction between supply, demand, and economic factors. Analysts suggest the market may have hit a bottom, with the extreme downturn in new project launches and sales indicating a standstill from which recovery can begin. The projected steep decline in new completions, from tens of thousands per year to just a couple thousand by the end of the decade, will significantly reduce incoming supply. This contraction should help absorb the existing inventory of unsold units, which included 8,629 unsold new condos under construction and slated for completion in the next couple of years, in addition to the record number of completed, unsold units.
Price stability and eventual growth are anticipated as the market rebalances. If sales continue to improve relative to the available inventory, the annual rate of price decline should continue to diminish. This would provide a foundation for renewed price growth potentially by 2027. The narrowing of the price gap between new and resale condos, aided by the HST rebate and developer price adjustments, is expected to stimulate activity in the new construction segment. However, this may come at a cost to developers, who in some cases are lowering prices below construction costs to move inventory, effectively selling at a loss to generate cash flow and reduce their holdings.
The long-term fundamentals for Toronto's condo market remain strong. The city's status as Canada's primary destination for immigration and its economic centrality ensure ongoing demand for housing. The condo form continues to be the fastest-growing housing type in Toronto, essential for accommodating growth within the existing urban footprint. The evolution toward more family-friendly unit sizes and the integration of condos within complete communities support their enduring appeal. While the market cycles through periods of adjustment, condos are likely to remain a vital component of Toronto's housing ecosystem, offering a pathway to urban homeownership for a broad segment of the population.
Steps for Purchasing a Condo in Toronto
- Assess Financial Readiness: Determine your budget, factoring in the down payment, mortgage payments, property taxes, and monthly condo maintenance fees. Explore government programs like the First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan if you are a first-time buyer.
- Define Your Criteria: Identify your priorities for location, price range, property type (resale or pre-construction), number of bedrooms, desired amenities, and lifestyle needs across Toronto's 143 neighbourhoods.
- Engage a Professional: Connect with a licensed real estate agent who specializes in the Toronto condo market. They can provide access to the MLS® system, offer negotiation expertise, and guide you through the process.
- Conduct Market Research: Use real estate portals to review active listings, recent sale prices, and building-specific data. For resale units, examine the condo corporation's status certificate for financial health and rules.
- View Properties and Make an Offer: Tour shortlisted properties, including open houses. In the current market, be prepared to negotiate on price and conditions, as buyers generally have more leverage.
- Secure Financing: Obtain a firm mortgage pre-approval based on current interest rates to understand your precise purchasing power and to strengthen your offer.
- Complete Due Diligence: For resale condos, this includes a review of the status certificate, a home inspection, and ensuring the property meets all your criteria. For pre-construction, review the developer's contract and track record thoroughly.
- Close the Transaction: Work with your lawyer to finalize the purchase, ensuring all conditions are met, funds are transferred, and you receive the keys to your new condo.
Frequently asked questions
What is the current average price for a condo in Toronto?
The median asking price for condos in Toronto is $638,000 as of 2025, reflecting a year-over-year decline of about 7%. The average selling price for condominium apartments in the second quarter of 2026 was $634,972 across the Greater Toronto Area. Within the City of Toronto itself, the average selling price during that period was $667,916. These figures indicate a market where prices have softened, creating more affordable entry points compared to previous peaks.
How many condos are for sale in Toronto?
There are over 7,200 condos actively listed on the Toronto MLS® system, providing a wide selection for buyers. In the second quarter of 2026, active listings at the end of the quarter were 8,061 units, though this represented a 15.4% decline compared to the same period last year. New listings are also decreasing, with 14,042 new condominium apartment listings in Q2 2026, down 19.0% year-over-year. This indicates a tightening inventory even as buyer choice remains substantial.
Have Toronto condo prices dropped?
Yes, Toronto condo prices have dropped significantly from their peak. Prices in the Greater Toronto Area peaked in 2022 and have since declined by about 25%. The median asking price in 2025 is down approximately 7% year-over-year. In a recent month, condo prices fell by 6.4% year-over-year, averaging just over $665,000. This correction has been part of a broader market adjustment following a period of rapid price growth.
What is the difference between new and resale condo prices?
A significant price gap exists between new and resale condos. In the first quarter of a recent year, the average cost per square foot of a new condo was $1,189 compared to an average resale price of $859 per square foot, a difference of 38%. This gap is expected to narrow with policy measures like Ontario's new HST rebate, estimated to cut new condo prices by an average of about $100,000. Historically, the premium for new condos has been in the range of 10% to 15%.
Are condo sales increasing in Toronto?
Condo sales have shown recent increases after a period of decline. In a recent month, 1,054 units were sold, a 14.4% increase year-over-year. For the second quarter of 2026, there were 4,783 condominium apartment sales reported, up 8.8% from the 4,395 sales in Q2 2025. This rebound is attributed to improved affordability from lower prices and borrowing costs. However, this follows a period of extreme weakness, including a first quarter where new project sales fell 52% year-over-year to a 35-year low.
Is now a good time to buy a condo in Toronto?
Current market conditions in Toronto favour buyers due to lower prices and increased negotiating power. The median asking price for condos is $638,000, down about 7% year over year. Sales activity is showing signs of recovery, with 1,054 units sold in a recent month, a 14.4% increase year over year. However, condo prices have continued to shrink, falling by 6.4% over the same period. Analysts suggest the market may have hit a bottom, creating a more approachable entry point for first time buyers. Improved affordability, supported by lower selling prices and borrowing costs, is encouraging more buyers to move off the sidelines.
Sources and further reading
- 6911 Condos For Sale in Toronto condos.ca
- Has Toronto's condo market hit its bottom? cbc.ca
- Condo Market Report trreb.ca
- Tridel Condos For Sale In Toronto tridel.com
- Toronto condo market 'hits bottom' as sales fall 52% financialpost.com
This article explains how things work and is not financial, tax or legal advice. Rules, limits and rates change, so check the current figures with the Canada Revenue Agency, your province or your financial institution before you act.