Toronto Condominium Resale Market 2025 Forecast

The Toronto condominium resale market has been experiencing downward pressure, and several indicators suggest this trend may continue into 2025.

Current Market Trends:

• Price Declines: In Q3 2024, the average condominium apartment price in Toronto decreased by 3.3% year-over-year, settling at $713,801, down from $737,035 in Q3 2023. 

• Sales Volume: Total condo sales in Q3 2024 were 4,204 units, a 4.4% decline compared to the same period in 2023. 

Factors Influencing the Market:

• Increased Inventory: New condo listings rose by 10.6% year-over-year in Q3 2024, leading to a higher supply in the market. 

• Investor Challenges: Reports indicate that over three-fourths of investors are incurring losses on mortgages for new condo units, suggesting financial strains in the investment sector. 

• Market Sentiment: Analysts have expressed concerns about the condo market’s trajectory, with some predicting further price declines in 2025. 

Predictions for 2025:

• Price Forecasts: Royal LePage anticipates a 1% year-over-year decline in Greater Toronto Area condo prices by Q4 2025. 

• Market Risks: Factors such as high inventory levels, cautious investor sentiment, and potential economic shifts contribute to a cautious outlook for the condo market in 2025. 

In summary, the Toronto condo resale market is currently facing challenges, and several indicators point toward potential further price declines in 2025. Prospective buyers and investors should closely monitor market developments and consider these trends when making decisions.