If you’ve been waiting for the perfect moment to buy a condo in Toronto, now might be it. According to the latest Toronto Regional Real Estate Board (TRREB) report, condo prices in Toronto have dropped to $651,000, the lowest they’ve been in over four years. This market shift is creating a rare window of opportunity for first-time buyers, investors, and anyone looking to secure property in the Greater Toronto Area (GTA).

Market Overview: What’s Happening in Toronto Real Estate

Across all property types, the average sales price has fallen 5.5% compared to July of last year, landing at $1.05 million. Condos, however, saw the most significant drop, a 9.3% year-over-year decline making them the most affordable option for entry-level buyers.

Despite this price drop, sales activity is heating up. July recorded the strongest sales since 2021, with condos alone seeing a 5.8% increase in transactions. Detached homes and semi-detached properties also saw double-digit gains in sales volume.

Why Condo Prices Are Falling

TRREB’s chief market analyst, Jason Mercer, explains that the condo market has seen a surge in available units, driven by:

• A record number of new condo completions from presales during the pandemic’s low-interest-rate era.
• Investors exiting the market as higher mortgage costs cut into profitability.
• A shift in buyer preference toward larger living spaces, moving away from studio and one-bedroom condos.

This increased supply, combined with slower sales growth, has put downward pressure on prices.

A Buyer-Friendly Market

Even though listings jumped 26% year-over-year in July, there’s growing optimism. Lower borrowing costs and expected future interest rate cuts from the Bank of Canada are making homeownership more affordable again.

Mercer notes:

“It takes time for rate drops to fully influence the market, but we’re already seeing more buyers finding conditions favorable.”

With more inventory and competitive pricing, buyers now have stronger negotiating power and more options to choose from.

What This Means for Homebuyers and Investors

• First-Time Buyers: Lower condo prices mean reduced down payments and mortgage amounts, making it easier to step into homeownership.
• Investors: With prices down and rental demand still strong in Toronto, this could be a strategic time to acquire units at discounted prices.
• Upsizers: Those selling smaller units to move into larger condos or houses can benefit from market adjustments on both ends.

Outlook for the Rest of 2025

While prices have softened, sales are expected to gradually pick up as more buyers return to the market. Experts predict that if sales continue to outpace new listings, we could see upward price pressure later this year.

Stay Ahead of Market Shifts

Toronto’s condo market is in a unique phase, offering opportunities that haven’t been available in years. Whether you’re buying your first home, upgrading, or investing, now is a strategic time to explore your options.

Follow our blog for more real estate insights, or contact our team today for personalized guidance to navigate this shifting market.