Condominium Sales in the GTA Show Significant Price Drops in September

📅 2 weeks ago

A detailed report from the Toronto Regional Real Estate Board reveals a significant decline in condominium sales and prices across the Greater Toronto Area in September.

In September, the Greater Toronto Area (GTA) saw a total of 1,316 condominium apartments sold, with a notable 893 of these transactions occurring at prices below $600,000. This figure highlights that nearly 68% of condo sales were priced under this threshold, while 594 units, or approximately 45% of the sales, were sold for less than $500,000. For prospective buyers evaluating their options, these figures provide a more relevant perspective than the overall average price of $1,006,409 for all housing types in the GTA.
The most significant price bracket for condos was between $400,000 and $499,999, where 390 units were sold. Additionally, 299 condos were sold in the range of $500,000 to $599,999. However, the data does not indicate whether suitable two-bedroom apartments are available within these price ranges in specific neighborhoods, as it merely reflects the sales without considering unit size or location.
According to the Market Watch report from the Toronto Regional Real Estate Board (TRREB), the average condominium selling price in September was $605,257, marking a 7.7% decline compared to the same month last year. This decline represents the steepest average-price drop among the four main housing categories reported by TRREB, which also includes detached homes, townhouses, and semi-detached homes, with average prices falling by 5.1%, 4.6%, and 0.2%, respectively.
In terms of sales volume, condo transactions fell by 7.8% from September 2025. Overall, GTA sales across all housing types decreased by 9%, totaling 5,040 transactions. The downturn in the condo market was particularly pronounced, as it combined falling sales numbers with the largest average price drop within the four-category comparison.
Interestingly, the most significant price reductions were observed outside the City of Toronto. The average condo selling price within Toronto was recorded at $640,248, down 6.1% year-over-year, whereas the average price in the 905 area—TRREB's reporting region outside Toronto—was $533,654, representing a 12% decrease. This price gap of $106,594 may motivate buyers to explore options beyond Toronto’s boundaries, although the comparison does not account for potential savings from moving to a similar apartment in the suburbs.
Both Toronto and the 905 area reported lower average prices compared to the previous year, with Toronto experiencing 884 condo transactions (down 5.5% year-over-year) and the 905 area recording 432 transactions (down 12.4%). Despite the price reductions, neither area saw an increase in sales.
As of the end of September, there were 8,226 condo apartments listed for sale within TRREB's coverage area, with 5,329 listings in Toronto and 2,897 in the 905 region. This results in a ratio of approximately six condos available for every one sold in Toronto and about 6.7 in the 905 area. This metric, which compares month-end listings to sales, illustrates the competition potential buyers face when considering existing apartments before making a purchase.
For developers, the existence of numerous resale options poses a challenge, as potential buyers can easily compare the features and prices of new units with those of nearby resales. Consequently, any premium pricing for new condominiums must be justified by appealing features like superior layouts or advantageous locations. The price bands established in the report indicate where the majority of completed condo purchases occurred, serving as a useful reference for developers in understanding the budget ranges that their projects must target.
However, the price bands do not account for the size of the units, which complicates the assessment of competitiveness. A unit's price per square foot may seem attractive, but if the total cost exceeds a buyer's budget, it becomes irrelevant. The Market Watch report focuses on resale transactions and does not encompass presales, construction starts, completions, or developer financial health, which would require additional data for a complete analysis. Therefore, a new project's pricing must remain competitive against the resale market to attract potential buyers effectively.

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