Condo sales plummet in Toronto and Vancouver but more resilient elsewhere
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The condo market in Canada's two largest cities has experienced significant decline from 2022 to the end of the first quarter of 2025, according to the most recent report from Canada Mortgage and Housing Corporation (CMHC). Though most smaller markets are still stable.
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The report, released Monday, said that condo sales in Toronto are down 75 per cent. In Vancouver they have fallen 37 per cent.
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Those condo markets were hot until 2022, with lower interest rates enticing buyers, investors and builders. However, higher interest rates have reduced affordability for homebuyers and returns for investors.
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Overall, CMHC expects the housing market to grow as lower mortgage rates and changes to mortgage rules unlock pent-up demand. However, the recovery will be uneven with the condominium apartment market lagging in parts of the country where many condo owners are investors struggling with rising costs and softening rents.
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Condo sales in the Greater Toronto Area (GTA) dropped 21.7 per cent year-over-year in the first quarter of 2025, with 3,794 units sold compared to 4,843 the previous year.
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Inventory has surged in Toronto, with more than 20,000 unsold condo units, including pre-construction, under-construction, and completed units.
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Meanwhile, listings are up 25.2 per cent year-over-year in the GTA, giving buyers more negotiating power and putting downward pressure on prices. While average condo prices have begun to decline that trend is not as steep as the drop in sales.
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In the GTA, the average selling price in the first quarter of 2025 was $680,146, a 2.2 per cent drop from the previous year.
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Resale condo prices in the GTA have fallen 16 per cent from their peak in early 2022.
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Echoing a CMHC observation, the TRREB says the GTA market is heavily investor-driven, with nearly 75 per cent of Toronto condos owned by investors.
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Even more disastrous is that over 80 per cent of investors in new condos in the GTA are losing $1,000–$1,500 per month per unit due to high interest rates and rising costs. Many can't raise rents enough to offset losses because of rent controls and a competitive rental market.
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