Toronto-area condos fall in price in 2025 as demand slows down  

A tradesperson moves a ladder while working on a balcony at a condo tower under construction, in Burnaby, B.C., on Wednesday, March 2, 2022. THE CANADIAN PRESS/Darryl Dyck

It’s been a tough year for the condominium market in the Greater Toronto Area as supply continues to grow while demand sluggishly moves along, and the problem is happening across the country, according to a new report.

REMAX released its 2025 Canadian Condominium Report on Monday, saying the continued disinterest in the condo market in the GTA amid increasing inventory has caused condo prices to drop in many places across the country.

The report stated that the average price of a condo in the GTA in 2025 dropped by 5.1 per cent to $691,308 from $728,350 in 2024. Unit sales also decreased from 20,590 in 2024 to 18,139 this year, representing a 11.9 per cent drop.

Despite the overall declines in the GTA, a few neighbourhoods in the region managed to “buck” the trend, including Bridle Path-York Mills-Sunnybrook and St. Andrew-Windfields, where sales rose by 33.6 per cent, Bathurst Manor-Clanton Park, where sales rose from 16.3 per cent, Etobicoke West Mall-Islington City Centre West-Kingsway South, where sales rose by 3.9 per cent and Don Mills-Banbury, where sales rose by 3.5 per cent.

“Condominium values have softened considerably from peak values across the board,” Don Kottick, President of REMAX Canada, said in the report. “For a financially well-prepared first-time buyer or upsizer, 2026 may present a rare opportunity to get into the market at a lower price point. We expect this window to remain open for roughly six months before inventory levels begin to tighten.”

The report stated that the lag is expected to continue until mid-2026 due to uncertainty surrounding the CUSMA extension negotiations, tariff-driven economic drag, higher living costs, upcoming mortgage renewals, and employment instability.

The report added that as the market chips away at a backlog of two years of inventory with eventual economic stability, it will “set the stage for healthier, more balanced market conditions in 2027” when demand may catch up with supply.

Pre-construction condo sales slowed “considerably” from peak levels in 2021-2022, according to the report, when near record-low interest rates and strong rental demand fueled the market.

Across Canada, nearly all condominium market reported softened prices with only three reporting slight sale increases, including the Greater Edmonton Area, Halifax and Calgary. The Greater Toronto Area, Vancouver and Fraser Valley saw the highest prices drops.

“Persistent financing challenges, elevated construction costs, labour shortages and a widening affordability gap have further eroded achievability in 2025, particularly in Toronto and Vancouver,” the report stated.

“A large part of the problem in markets such as the GTA has been the growing disconnect between the product coming to market and the needs of today’s buyers.”