Toronto's condo market is showing signs of recovery after a prolonged slowdown, with condo sales picking up in April as lower prices and borrowing costs encouraged buyers to re-enter the market. Condo prices have dropped by approximately 25% since their 2022 peak, according to a real estate board.
The shift represents a dramatic change from previous market conditions. Realtor Thomas Delespierre noted that Toronto's condo segment has transformed from a seller's market—where units would sell in less than two weeks—to a buyer's market, where condos can now sit on the market for four to six months. "Buyers have a lot more choices, they can negotiate more," Delespierre said. "It's much harder for sellers".
First-time buyers are capitalizing on the improved conditions. Tyler Florian, a 29-year-old financial planner, purchased a two-bedroom condo in Fort York, a high-density neighbourhood in downtown Toronto, in February. His real estate agent noted prices were comparable to 2017 levels. Florian, who had previously been living with his parents, attributed his purchase to the combination of lower prices and interest rates.
Federal programs have also supported market activity. The First Home Savings Account and the RRSP Home Buyers' Plan, coupled with lower interest rates, helped Florian acquire his first property. Florian described the timing as favourable, though cautious about the market's trajectory: "It's good for people looking to get into the market. Of course, we don't know if it's the bottom or not, but it seems like it's a good time".
