Toronto Condo Market Slump Deepens as Prices and Sales Drop Again

The Toronto condo market continues to struggle, with sales and prices dropping again in September 2026. Data from the Toronto Regional Real Estate Board (TRREB) shows sales fell 5.5% in the city center and 12.4% in the broader 905 region. Average prices also declined, with a 6.1% drop in the city center and a 12% decrease in the 905. Overall, the average condo price in the Greater Toronto Area (GTA) now stands at $605,257, a 24.3% decrease from February 2022.

Experts remain pessimistic about the market’s near-term prospects. Ron Butler, founder of Butler Mortgage, described smaller condos as 'not just dead, they’re buried.' He suggested that these units face an uncertain future, particularly as interest rates continue to rise. Canada Mortgage and Housing Corporation (CMHC) deputy chief economist Aled ab Iorwerth noted some buyers are taking advantage of discounted prices, but a full recovery is still years away, possibly by 2028.

The slump in condo sales has led to a sharp decline in construction, which could worsen the housing crisis in the long run. Ab Iorwerth warned that the lack of new condo starts could lead to a housing shortage if the economy rebounds in the next few years. Some larger investors are buying condos in bulk at fire-sale prices, betting on a long-term recovery, though Butler believes they may have to wait four to seven years before seeing any profit.