Toronto Condo Market Hits 35-Year Low: Is Now the Time to Buy?

Toronto’s condo market is experiencing one of its most significant slowdowns in decades.

After years of soaring prices, fierce competition, and investor-driven demand, the market has shifted dramatically. Condo sales have slowed, inventory has increased, and many units are now sitting on the market longer than buyers have become used to seeing.

According to recent reports, new condo sales in the Greater Toronto Area have fallen to levels not seen in over 35 years — a major signal of how much the market has changed.

But while headlines focus on the downturn, another trend is beginning to emerge: buyers are slowly returning.

So what’s really happening in Toronto’s condo market, and could this finally be an opportunity for buyers?

Why Toronto’s Condo Market Has Slowed Down

The slowdown didn’t happen overnight.

Over the past two years, rising interest rates dramatically changed affordability across the GTA. Monthly mortgage payments increased sharply, investor confidence weakened, and many buyers paused their searches while waiting for market conditions to stabilize.

At the same time, a large amount of condo inventory entered the market, especially smaller investor-focused units in Toronto’s downtown core.

This combination created the perfect conditions for a market correction:

• Higher borrowing costs
• Reduced investor activity
• Increased supply
• Buyer hesitation
• Softer rental market growth

For the first time in years, buyers gained something they hadn’t had in a long time: leverage.

Condo Buyers Finally Have Negotiating Power Again

Today’s market looks very different from the ultra-competitive conditions Toronto became known for during the pandemic boom.

Instead of competing against multiple offers within hours of a property hitting the market, buyers are now seeing:

• More inventory choices
• Longer days on market
• Conditional offers returning
• Price reductions becoming more common
• Increased flexibility from sellers

For many buyers, especially first-time buyers and end-users, this shift has created opportunities that simply didn’t exist a few years ago.

In some segments, condo prices have dropped significantly from their peak 2022 values, allowing buyers to enter the market at lower price points while negotiating better terms overall.

Are Toronto Condo Prices Still Falling?

In many areas, yes.

Smaller units, investor-heavy buildings, and properties with high carrying costs have generally seen the largest corrections. Some reports suggest certain condo segments are now trading roughly 15–20% below peak pricing seen during the height of the market.

However, markets rarely move in a perfectly straight line.

While prices may still experience fluctuations, many analysts believe the aggressive downward momentum seen earlier in the correction is beginning to stabilize.

Mortgage rates have started leveling out compared to previous highs, and buyers who delayed their searches are cautiously re-entering the market.

This doesn’t necessarily mean prices will immediately rebound — but it does suggest buyer confidence may slowly be returning.

Is Now a Good Time to Buy a Condo in Toronto?

That depends on your goals.

If You’re Looking for Short-Term Appreciation

The market may still feel uncertain.

Inventory levels remain elevated in some areas, and there’s still pressure on certain condo segments. Buyers looking for quick appreciation or short-term investment gains may continue to see volatility.

If You’re a Long-Term Buyer

This market could present one of the strongest buying opportunities Toronto has seen in years.

When competition decreases and negotiation power increases, buyers gain advantages that are rarely available during peak markets:

• More time to make decisions
• Better purchase prices
• Financing conditions
• Inspection conditions
• Flexible closing dates
• Potential upgrade or inclusion negotiations

Historically, some of the best long-term purchases happen during periods of uncertainty — not during peak market euphoria.

Toronto’s long-term housing fundamentals also remain strong:

• Continued population growth
• Immigration demand
• Limited land supply
• Long-term housing shortages
• Strong economic infrastructure

These factors continue to support long-term demand across the GTA housing market.

What Buyers Should Watch Right Now

If you’re considering entering the condo market, here are a few key factors to monitor:

Interest Rates

Mortgage rates remain one of the biggest drivers of buyer activity. Future rate cuts could bring more competition back into the market.

Condo Fees

Higher maintenance fees are impacting affordability more than ever. Buyers are paying closer attention to building financial health and monthly carrying costs.

Building Quality

Not all condos are performing equally. Well-managed buildings in desirable locations continue to outperform weaker investor-heavy developments.

Rental Market Conditions

Investors are watching rental demand closely, especially in downtown Toronto where supply has increased substantially.

The Bottom Line

Toronto’s condo market has clearly gone through a major reset.

The frenzy is gone. Buyers are more cautious. Investors are more selective. But the market is far from frozen.

For many buyers, this may actually be the first time in years where opportunity, negotiation power, and inventory selection are working in their favour instead of against them.

The biggest mistake buyers often make is waiting for absolute certainty.

Because by the time the market “feels safe” again, competition has usually already returned.

Thinking About Buying or Selling in Today’s Market?

Whether you’re considering your first condo purchase, upgrading, investing, or simply trying to understand where the Toronto market is heading next, having the right strategy matters more than ever.

If you’d like personalized advice on today’s condo market, reach out anytime — happy to help you navigate it.

 

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Related Toronto Real Estate Market Updates

Want to stay updated on where the GTA housing market is heading?

📈 Read our latest April 2026 Toronto Market Update for a deeper breakdown of sales activity, pricing trends, inventory levels, and what today’s market means for buyers and sellers across the GTA.

🔗 April 2026 Market Update

You can also explore the latest housing statistics and reports directly from the Toronto Regional Real Estate Board (TRREB):

🔗 https://trreb.ca/

For additional reporting on Toronto’s condo slowdown, read the original article here:

🔗 https://www.cbc.ca/news/business/toronto-condo-market-bottom-9.7192760

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