Toronto Condo Prices Just Had One of The Worst Months On Record

Toronto's condo market just experienced one of its sharpest declines, with prices dropping 2% in September. This reduction, which translates to a loss of about $13,400 on average, marks one of the worst monthly performances on record. It reflects a broader cooling trend in Toronto’s real estate, as interest rates remain high and demand wanes.

Despite hopes that prices would stabilize, Toronto condos now show a significant year-over-year drop of 7.2%. This downturn resembles past market corrections, with a double-dip drop last seen in the early 1990s. Since their peak in April 2022, condo prices have fallen by more than 16%, erasing the value gains made over the past few years.

The declining prices come as more condos are put up for sale, adding to an already challenging market. However, high interest rates and stricter mortgage requirements are limiting the number of buyers, keeping demand low. Meanwhile, rental vacancies in Toronto have increased, further pressuring condo prices.

Experts caution that without a demand surge, condo prices may continue their descent. While buyers may benefit from lower prices, a recovery is not expected in the immediate future, signaling more difficult months ahead for sellers.

Toronto's real estate market remains unpredictable, with stakeholders waiting for signs of stability. Investors and homeowners are watching closely to see if the downward trend will continue into next year.