Condo oversupply weighs on prices
Data from the Toronto Regional Real Estate Board (TRREB) released on Thursday showed that average condo prices across the wider 905 region slumped 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.
But Routledge suggested a jump in listings could be good news for some buyers. “When you talk about in one of our largest cities, a bit of excess inventory in condominiums, which are starter places for younger Canadians who want to get into the real estate market, you know that there’s a little bit of excess supply and prices are coming down off all-time highs,” he said.
Still, he said the regulator was closely watching developments. “We’ve been talking about commercial real estate risk in our annual risk outlooks for a number of years now, so I’d be disingenuous if I said we weren’t concerned,” he added.
Toronto’s condo market in flux
Industry analysts have noted that Toronto’s condo market faces ongoing headwinds, with prices showing “no signs of stabilizing” and demand for new units plunging. While this presents challenges for investors and developers, the increased supply and falling prices may offer a long-awaited entry point for first-time buyers.