If you’re thinking about buying a condo in Toronto, you might be in luck—at least for now. The market is packed with inventory, giving buyers the upper hand. Prices are more negotiable, choices are plenty, and developers are offering incentives just to close deals. But here’s the catch: this window of opportunity won’t stay open forever. The future of Toronto’s condo market looks a lot different, and it’s only a matter of time before prices climb, supply shrinks, and affordability becomes an even bigger issue.
The Current State of Toronto’s Condo Market
Right now, buyers have options—lots of them. According to real estate data, inventory levels are high, and sales have been slow. That means developers and sellers are feeling the pressure to sweeten deals. Whether it’s price reductions, upgrades, or incentives like waived maintenance fees, buyers have some serious leverage.
Even pre-construction condos, which typically fly off the market, are seeing a slowdown. In 2024, pre-construction sales dropped by about 50% compared to the previous year. This means projects are getting delayed or even scrapped altogether. For buyers, this translates to more negotiating power, but for the market as a whole, it’s setting the stage for a supply crunch down the road.
Why This Buyer’s Market Won’t Last
If you’re waiting for prices to drop even further, you might want to rethink that strategy. Here’s why:
- Interest Rates Are Dropping The Bank of Canada has started cutting interest rates, which means cheaper mortgages. Lower borrowing costs could encourage more people to jump into the market, increasing demand and pushing prices up.
- Fewer New Condos Are Being Built Developers aren’t selling enough pre-construction units to justify new builds, and without enough new supply, the city could face a shortage in the coming years. Less supply + more demand = higher prices.
- Population Growth & Housing Demand Toronto isn’t getting any smaller. Immigration and urban growth will keep fueling demand for housing, especially in the condo market. When supply tightens and demand remains steady or increases, prices naturally go up.
What This Means for Buyers
If you’re on the fence about buying a condo, now might be the time to make a move. Here’s how to play it smart:
- Act Sooner Rather Than Later: With interest rates coming down and demand likely to pick up, today’s deals won’t be around forever. So if you are thinking about investing, it is better to do it sooner rather than later.
- Look for Incentives: Developers and sellers are willing to negotiate, so take advantage of closing cost rebates, free upgrades, or price reductions.
- Secure Your Mortgage Pre-Approval: Lock in a low rate while they’re still dropping, so you’re ready to move when you find the right place.
- Think Long-Term: Prices might be stable now, but over the next few years, they’re expected to climb. If you wait too long, affordability will be an even bigger challenge.
The Bottom Line
Toronto’s condo market is offering buyers a rare moment of opportunity, but it’s not going to last. If history has taught us anything, it’s that waiting too long in this city’s real estate market usually means paying more later. Right now, there are deals to be had, choices to be made, and sellers who are willing to negotiate. But in a year or two? Expect rising prices, fewer options, and tougher competition. So, if you’re serious about buying, now’s the time to start making moves.
