Toronto Condo Market: What Buyers and Renters Need to Know
Toronto's condo market is in the middle of a prolonged price correction, even as sales activity picks up. According to the Toronto Regional Real Estate Board's (TRREB) Condo Market Report, the average condo apartment price across the Greater Toronto Area fell 9.1% year-over-year to $618,484 in the first quarter of 2026, while condo apartment sales dropped 11.3% over the same period.
How Far Have Toronto Condo Prices Fallen?
Toronto condo apartment prices have fallen roughly 9% to 10% year-over-year through the first half of 2026, continuing a correction that began in 2023. TRREB's June 2026 Market Watch data, reported by WOWA.ca, showed condo apartments averaging $630,688 that month, down 1.4% from May and 9.4% from June 2025 — the steepest annual decline of any housing type tracked in the GTA.
TD Economics puts the correction in longer perspective: as of the first quarter of 2026, benchmark GTA resale condo prices had fallen approximately 10% year-over-year, and the bank projects prices could ultimately decline 25% to 30% from their early-2022 peak before the market stabilizes, likely sometime in 2028. If that plays out, TD notes it would make this the longest condo price downturn in the GTA since the late-1980s to mid-1990s slump.
Why Are Condo Prices Falling While Sales Rise?
Sales and prices are moving in opposite directions because buyers are stepping back into the market only at lower price points, while elevated supply and weak investor demand keep pressure on values. TRREB reported condo apartment sales rose 13.5% year-over-year in June 2026 to 1,714 units, yet the average price still fell — a pattern TD Economics attributes to subdued demand relative to still-elevated supply, constrained investor appetite, and a shrinking Ontario population reducing pressure on both home prices and rents.
Investor-owned units are a particular source of pressure. TD Economics notes that softening rents have made condos less attractive as investment assets, and with population growth weak and job growth modest, the demand needed to absorb existing inventory has been slow to materialize. Notably, a July 2026 report from the Canadian Press found that for the first time in 16 years, condos in Toronto are now more affordable than those in Montreal relative to local residents' income levels — a sign of how far the correction has gone.
Toronto Condo Market: Q1 2025 vs Q1 2026
The clearest picture of the correction comes from comparing year-over-year figures directly. TRREB's official Condo Market Report shows declines across both sales volume and price for the first quarter of each year.
| Metric | Q1 2025 | Q1 2026 | Change |
|---|---|---|---|
| GTA condo apartment sales | 3,791 | 3,361 | -11.3% |
| Average GTA condo apartment price | $680,243 | $618,484 | -9.1% |
| Average condo price, City of Toronto | $711,258 | $649,330 | -8.6% |
Source: TRREB Condo Market Report, first quarter 2026, published May 2026. These figures reflect resale condo apartments and don't necessarily apply the same way to new construction or condo townhomes, which TD Economics notes have held their value better through this correction.
What This Means for Buyers vs Renters
A falling condo price doesn't affect buyers and renters in the same way, and the two groups face different practical considerations right now.
- Buyers have more negotiating room. TRREB reported the average sale-to-list price ratio held around 97% through spring 2026, and average days on market rose to 34–41 depending on the region — both signs that sellers are more willing to negotiate than in a tight market.
- Falling prices don't automatically mean falling rents. Ownership prices and rental rates are driven by different forces, and a price correction in the resale condo market doesn't guarantee lower asking rents for tenants — always check current rental listings and vacancy data for your specific building or neighbourhood rather than assuming.
- New listings are shrinking faster than sales are recovering. TRREB data shows new condo listings falling well ahead of sales growth in 2026, which some analysts see as an early signal that inventory could tighten later in the year.
- Investor-owned units remain a wildcard. With rents under pressure and carrying costs elevated, TD Economics flags investor-owned condos as the segment most likely to see continued price softness if owners decide to sell rather than hold.
This is general market information, not investment or financial advice. Real estate market corrections are difficult to time precisely, and anyone considering a purchase or sale should confirm current conditions with official TRREB data and, where appropriate, a qualified professional.
Frequently Asked Questions
Is the Toronto condo market crashing?
"Crashing" implies a sudden drop, but the Toronto condo correction has been gradual and sustained since 2023. TD Economics describes it as an extended correction rather than a crash, with prices down roughly 9–10% year-over-year through early 2026 and further declines still expected before the market stabilizes.
Why are Toronto condo prices falling?
TD Economics points to weak demand relative to elevated supply, subdued investor interest as rents soften, slow population growth, and modest job growth. TRREB's data shows sales have been improving in 2026, but not yet enough to absorb existing inventory and stop prices from declining.
Is now a good time to buy a condo in Toronto?
That depends on your personal financial situation, timeline, and risk tolerance — this isn't something a general market update can answer for you. What the data shows is that buyers currently have more negotiating leverage than in recent years, with longer days on market and sellers more willing to accept offers below asking.
How long will the Toronto condo market correction last?
TD Economics projects the price decline could continue through 2026, with the rate of decline slowing in 2027 and a sustained uptrend not expected until 2028. If that forecast holds, the bank notes it would make this one of the longest condo corrections on record for the GTA.
Are Toronto condo rents falling along with prices?
Not necessarily in the same way. Resale condo prices and rental rates respond to different pressures, and while TD Economics notes rents have softened enough to reduce investor demand for condos, that doesn't mean every building or neighbourhood is seeing lower asking rents. Checking current listings and vacancy data for your specific area is more reliable than assuming price and rent trends move together.
Weigh Your Own Numbers
Market-wide trends are a starting point, not a personal decision. If you're weighing whether to rent or buy a condo in this market, our Rent vs Buy in Toronto guide breaks down the financial trade-offs, and our mortgage calculator can help you model different price scenarios against your own budget.