The condominium apartment market in Toronto has become more balanced over the past year. In the third quarter of 2023, condo apartment sales increased by 6.2% compared to the same quarter in 2022. However, the growth in new condo apartment listings outpaced the sales, with a significant increase of 28.8% over the same period.
This shift towards a better-supplied market has provided more choices for first-time buyers, increasing their negotiation power and leading to lower average selling prices. The pause in price growth has helped mitigate the impact of higher monthly mortgage payments.
In Q3 2023, the average selling price for a condominium apartment in the Greater Toronto Area (GTA) was $716,145, slightly down from $720,628 in Q3 2022. In the City of Toronto, which accounted for the majority of condo apartment sales, the average selling price was $736,566, a decrease from $750,087 in Q3 2022.
Looking ahead, while condo market conditions have become more balanced, there may be a tightening in the market in the second half of 2024. The GTA’s population is growing rapidly, and there is an expectation of some relief in borrowing costs beginning in 2024 and further in 2025.
TRREB President Paul Baron noted, “The condominium apartment market is an important entry point into home ownership for first-time buyers,” and Chief Market Analyst Jason Mercer mentioned that “we will likely start to see a tightening in the market in the second half of 2024” due to population growth and changing borrowing costs. To see the full market report click here.