Home prices slide again in Toronto as condo slump continues

Prices across Toronto’s housing market were down again in August, led by another steep decline in condo prices throughout the city and its suburbs.

The average selling price of a home slipped by 5.2% compared with the same time last year, new data from the Toronto Regional Real Estate Board (TRREB) released on Thursday showed, with average condo prices across the wider 905 region slumping by 10.6%.

Condo sales also fell again, dropping by 3.4% in the city centre year over year and by 7.7% in the suburbs. Year to date, condo sales have plummeted by 16.6% overall compared with the same period in 2024, TRREB said.

The figures reflect an overall Toronto market that’s showing little sign of rebounding, with plenty of buyers continuing to wait on the sidelines in anticipation of possible further price drops – and lower interest rates – down the line.

Detached, semi-detached, and townhouse sales all increased in the city centre, sparked by generally lower prices (although townhouse prices inched upwards by 1% in the 416).

But a flood of new inventory is also entering the market, even with demand low by historical standards. There were 14,038 new listings entered into the MLS System in August, an increase of 9.4% over the same month in 2024.

TRREB’s chief information officer Jason Mercer suggested the price drops seen to date had not been enough to brighten the affordability picture for many buyers.

“A household earning the average income in the GTA is still finding it challenging to afford the monthly mortgage payment associated with the purchase of an average priced home,” he said in prepared remarks.

“This is even with lower borrowing costs and selling prices over the past year. Further relief in borrowing costs would see an increased number of buyers move off the sidelines to take advantage of today’s well-supplied market.”

A glut of new condo inventory is also expected to arrive in Toronto in the months ahead, potentially putting even further downward pressure on prices in that space and deepening a crisis that federal housing minister Gregor Robertson described this week as a market in “free fall.”

CMP

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