No One Wants to Buy a Toronto Condo? Perfect.

If you’re just scanning headlines, you’d think Toronto’s condo towers were hollowing out like abandoned Jenga blocks. “No one wants to buy a condo” makes it sound like the whole skyline’s on clearance. Condos have become the Crocs of real estate: relentlessly mocked, yet quietly essential. And much like Crocs, they’re not going anywhere.

Here’s the twist the doomers miss: the Toronto condo market isn’t collapsing. It’s correcting. Preconstruction is wobbling on stilts, but resale? Resale is finally more affordable, negotiable, and full of openings for buyers who were locked out in the frenzy years.

Toronto Condo Prices in 2025: Back to Reality

Remember when buyers were writing love letters to sellers just to score a 500-square-foot box in Liberty Village? Those days are gone.

The average GTA condo sold for $685,961 in Q2 2025, nearly 6% lower year-over-year. In downtown Toronto, the average was $717,210, down 6.3%. Compare that to the $800,000-plus highs of 2021–22 and you can see how far the balloon has deflated.

Sales activity tells the same story. May 2025 condo transactions fell 23% compared to May 2024, while active listings swelled to nearly eight months of supply. That’s a decade high for Toronto. In simple terms: we’ve gone from famine to feast. Buyers finally have room to breathe — and room to negotiate.

Even at the neighbourhood level, the correction is clear. In Downtown East, average resale prices slipped 7% year-over-year to about $707,000, with more than eight months of inventory and average days on market stretching to 33. King West, once the poster child of bidding wars, now has units sitting unsold unless staged and priced smart. St. Lawrence Market and Riverdale are showing similar patterns: slower sales, but deals for buyers who can see past the fear.

Preconstruction Condos: Champagne Dreams, Flat Beer Reality

If resale is correcting, preconstruction is imploding.

In Q2, only 502 preconstruction units sold across the GTA. That’s a jaw-dropping 69% drop from last year and a staggering 91% below the 10-year average. Developers launched just three projects (891 units) in the quarter while cancelling four outright. Some have pivoted to rentals. Others have shelved projects altogether.

Meanwhile, unsold precon inventory has ballooned to 24,045 units across all stages — from projects with foundations poured to completed towers nobody has moved into. That’s the highest oversupply in three decades.

And the human fallout is brutal. The Walrus reported buyers who put down $60,000 deposits at the 2021 peak only to watch appraisals come in $220,000 below purchase price. They lost their deposits — and in some cases, developers sued them for damages. Urbanation data shows new buildings that reached occupancy in Q2 2025 were only 88% pre-sold, leaving thousands of completed units sitting empty. Even worse? Resale prices in those buildings averaged $903 per square foot, while pre-sold contracts were priced at $1,187 psf. That’s a $284 psf haircut for reality.

Buying precon right now is like buying concert tickets for a band that hasn’t even formed yet. Resale is walking into the venue tonight.

This is why I’ve never sold preconstruction. You deserve walls you can touch, fees you can calculate, and a move-in date you don’t need a crystal ball to guess.

Resale Condos: The Underrated Hero

Resale may not come with champagne at a launch party, but it’s suddenly the smartest play in Toronto real estate. Prices are softer — yes — but that’s the opportunity.

Q2 resale activity actually ticked upward: 4,074 units sold, a 16% lift from Q1’s 3,514. Toronto itself saw an 11% rebound in July sales compared to July 2024. Buyers are waking up to the fact that resale offers what precon can’t: certainty. You know the building, the neighbourhood, the maintenance fees, and the view. You can walk through the door, not squint at a rendering.

In neighbourhoods like Liberty Village, units that would have sparked bidding wars in 2021 are now negotiable. Yorkville still commands a premium, but buyers there have leverage for the first time in years. Along the Etobicoke waterfront, investors who bought with rental dreams are quietly retreating, leaving deals for end-users who actually want to live there.

For sellers, this doesn’t mean panic. It means strategy. The condos that are staged, marketed, and priced for today — not for 2021 fantasy land — are still moving. In fact, they stand out more because buyers now compare carefully instead of lunging blindly.

Rental Market: The Quiet Bonus

Condo rentals are softening too — a twist that benefits both buyers and renters. In mid-2025, one-bedroom rents fell 5.1% YoY to $2,326, while two-bedrooms dropped 3.5% to $2,589. For investors, that stings. But for buyers sitting on the sidelines or renters upgrading their space, it’s relief. Whether you’re living in your unit or renting one out, the numbers are more balanced.

Why Toronto Still Needs Condos

For all the noise, condos aren’t disappearing. They’re the DNA of modern Toronto.

Every year, tens of thousands of new residents arrive in the GTA. Most don’t buy detached houses in Forest Hill — they rent or buy condos. The downtown core remains Canada’s employment hub. The convenience of walking to work, hopping on the subway, or living near restaurants and nightlife doesn’t vanish because interest rates spiked.

Developers may be slowing launches now, but that creates a different problem: a future supply crunch. Construction starts are down 84% over the past two years. Once the record-high 31,422 completions in 2025 are absorbed, the pipeline will thin out dramatically. Buyers getting into resale today are setting themselves up for appreciation when supply inevitably tightens again.

Toronto without condos? Please. That’s like Toronto without traffic on the Gardiner. It’s not happening.

What This Means for Buyers and Sellers

For buyers, this is the opening you’ve been waiting for. Prices are rolled back to pre-pandemic levels. Inventory is high. Investors have pulled back. And suddenly, the city that felt impossible to buy into is within reach again.

For sellers, the sky isn’t falling. Condos are still selling, but success takes work. Presentation and pricing are everything. Pretend it’s still 2021 and your listing will sit. Price for 2025, and you’ll move.

For preconstruction investors? It’s pain. The shiny brochures from 2021 don’t pay your lawyer when appraisals come in low. If you’re buying now, resale is the safer, saner bet.

Bottom Line: Toronto Condos Are on Sale

The Toronto condo market isn’t collapsing. It’s correcting. Preconstruction is in freefall, but resale is wide open. For buyers, this is one of the best opportunities in years to step into the market at a discount. For sellers, it’s a reminder that what you own is still valuable — if you play the game right. And for the city as a whole, condos remain the backbone of urban life.

So when you hear “no one wants to buy a condo,” don’t panic. Smile. Because that just means the smart ones can.

The headlines say no one wants condos. Perfect. That means opportunity for you. Whether you’re buying your first place, upgrading, or selling in today’s market, I can help you navigate the reset. Reach out here and let’s talk about your next move.