The Toronto condo market is going through a serious shake-up—and if you’ve been watching from the sidelines, now might be your moment to make a move.
According to a recent report from CMHC (Canada Mortgage and Housing Corporation), condo sales in Toronto have dropped by 75% over the past three years. At the same time, resale prices are down by over 13% since 2022. That’s a major shift for a city where bidding wars and sky-high prices were the norm not long ago.
So what’s behind the drop? Inventory is climbing, new builds are slowing down, and developers are hitting pause—or switching to rental projects entirely. In the first quarter of 2025 alone, over half of Toronto’s pre-construction condos went unsold. That’s making it harder for builders to secure financing, which in turn puts a squeeze on future supply.
Short-term dip. Long-term risk.
While all this sounds like a buyer’s dream (and it is), there’s a bigger story here. Fewer new projects mean we’re likely headed toward a future shortage of condos in Toronto—again.
Toronto Real Estate Broker and owner of RE/MAX Ultimate Realty, Tim Syrianos, was quoted in the CMHC report, saying:
“With growing inventories, sellers and builders are more open to negotiation, offering incentives and price reductions not seen in over a decade,” he says. “Smaller condos offer the greatest opportunity for first-time buyers, as they represent the easiest and most affordable entry point into the market.”
In other words, buyers have leverage right now—and not just on price. Incentives, upgrades, and flexible terms are all back on the table.
But don’t mistake this moment for a permanent trend.
CMHC also warns that the current slowdown could backfire in the long term if construction doesn’t bounce back. If developers continue to cancel projects, we’ll likely see condo supply tighten again in the years ahead, pushing prices and rents back up.
At CondoDigs, we track Toronto condos closely so you don’t have to. Whether you’re a first-time buyer, investor, or just a curious condo-dweller, we’re here to help you stay informed and ahead of the curve.
Here’s what we’re watching:
- Sales are down, but buyers have more negotiating power than ever.
- Developers are holding back, which could lead to a future supply crunch.
- Investors are quietly picking up multiple units—often at a discount.
- Rental prices are softening, but leased units are starting to outpace new listings.
The bottom line? The Toronto condo market might be in a cooling phase now, but it won’t last forever. If you’ve been waiting for a sign, this could be it.
