Toronto's condominium market continued to soften in June, with the Toronto Regional Real Estate Board reporting the third consecutive monthly decline in average selling prices for units under 650 square feet. The average price of a downtown Toronto condo fell to $698,400 — down 4.2% year-over-year and 6.8% from the local peak reached in the spring of 2022.
The data confirms what many real estate observers had been warning since the Bank of Canada began its rate-cutting cycle: the relief for condo sellers would be slower to materialise than for detached home owners, given the segment's particular sensitivity to investor sentiment and rental market dynamics.
Inventory at 12-Year High
Active listings in the 416 area code reached 18,342 condo units at the end of June — the highest level since April 2012. New listings increased 22% compared to June 2025, driven primarily by investor-owned units returning to the market as rental yields compress under the weight of rising vacancy rates.
"The investor exit is the dominant story here," said Patricia Romero, a broker at Re/Max Hallmark in downtown Toronto. "We're seeing units that were purchased pre-construction in 2019 and 2020 finally closing and coming to market simultaneously. The sellers had hoped to catch a higher price point. That window may have passed."
"The investor exit is the dominant story. Sellers who had hoped to catch a higher price point — that window may have passed."
— Patricia Romero, Re/Max Hallmark
What Buyers Should Know
For prospective buyers, the data presents a genuine opportunity to negotiate. Days on market for condos in the 416 rose to 31 days in June, compared with 18 days a year ago, giving buyers substantially more time to conduct due diligence and leverage competing listings. Offers below asking are becoming increasingly accepted, with the average condo selling at 97.1% of its list price — the lowest ratio since 2009.
Financing conditions have also become more manageable. The best insured five-year fixed mortgage rate available through major Canadian lenders now sits at 4.14%, with some credit unions and B-lenders offering sub-4% rates for borrowers with strong credit profiles. The monthly carrying cost for a $700,000 condo with a 20% down payment at today's rates is approximately $3,240 — still elevated by historical standards but noticeably below the $3,800+ peak of late 2023.