Navigating Toronto's Condo Market in 2025: What the Latest Data Means for Buyers and Investors

RIISE
May 27
4 min read

Toronto's vibrant skyline is continually reshaped by its condominium market, a sector that has seen significant shifts in 2025. For both prospective buyers and savvy investors, understanding the current dynamics, driven by a surge in supply and evolving buyer sentiment, is crucial. At RIISE, we believe in empowering our clients with the latest, data-driven insights to make informed decisions.

Let's dive into what the most recent data from the Toronto Regional Real Estate Board (TRREB) and other market analyses tell us about the current state of Toronto's condo landscape.

A Buyer's Market Emerges: Increased Choice and Negotiating Power

The most defining characteristic of the Toronto condo market in early 2025 has been a significant increase in available inventory, tilting the scales in favour of buyers.

Soaring Listings: TRREB's Q1 2025 Condo Market Statistics reveal a substantial jump in new listings. There were 14,544 new condominium apartment listings in Q1 2025, a robust 25.2% increase compared to 11,614 new listings in Q1 2024. This surge in supply offers prospective buyers unprecedented choice.
Sales Decline: While listings are up, sales activity has cooled. Q1 2025 saw 3,794 condominium apartment sales in the GTA, a 21.7% decrease compared to 4,843 sales in Q1 2024. This gap between rising supply and declining demand is a key indicator of a buyer's market.
Softer Prices: With more units on the market and fewer transactions, prices have softened. The average selling price for a GTA condominium apartment in Q1 2025 was $680,146, representing a 2.2% decrease compared to the average of $695,555 in Q1 2024. More recent data for April 2025 indicates the average resale condo price in Toronto at $682,019, marking a 2.6% annual decline and a 15.7% drop from the 2022 peak of $808,921.

This translates to more negotiating power for buyers, as sellers are often more willing to consider offers and adjust pricing to move their units in a competitive environment.

The Impact of Interest Rates and Economic Sentiment

The Bank of Canada's interest rate decisions continue to be a dominant force in the real estate market.

Easing Rates, But Caution Remains: While the Bank of Canada held its key policy interest rate steady at 2.75% as of April 16, 2025, after a series of reductions earlier in the year (down from a 5.00% peak in early 2024), consumer confidence remains tempered. Ipsos polling for TRREB suggests that would-be homebuyers still require more relief on borrowing costs.
Economic Uncertainty: Broader economic concerns, including uncertainty surrounding Canada's trade relationship with the United States, are also contributing to a temporary waning of confidence among potential buyers.

These factors mean that while borrowing costs are more favourable than a year ago, many are still taking a cautious approach, contributing to the elevated inventory levels.

New Construction vs. Resale: A Tale of Two Markets

The Toronto condo market isn't monolithic; distinct trends are emerging between new construction and resale properties.

Record Completions Driving Supply: Approximately 31,000 new condo units are expected to be completed in 2025 across the GTA, a significant influx of inventory. This includes units that were presold years ago, now hitting the market for occupancy and potential resale.
Challenges for Peak-Price Pre-Construction Buyers: For those who purchased pre-construction units at peak prices, particularly in 2021-2022, the closing period in 2025-2026 may present challenges as market values have adjusted.
Developer Incentives: Developers are increasingly relying on incentives for new sales, including substantial cash-back credits, temporary price reductions, and rental guarantees, to attract buyers in a more saturated market.
Shifting Investor Dynamics: The smaller, investor-driven condo market is currently struggling, with high borrowing costs deterring new investor purchases. This has opened opportunities for first-time homebuyers and end-users who were previously priced out.

What This Means for You:

For Buyers:

Opportunity Knocks: This is arguably the best time in years for condo buyers in Toronto. The increased inventory means more choices and significantly more negotiating power.
Due Diligence is Key: Research thoroughly. Understand the average price trends for the specific neighbourhoods and building types you're interested in.
Don't Wait Indefinitely: While the market favours buyers now, potential further rate cuts later in 2025 and improved economic confidence could reignite demand. Acting strategically in the current environment could secure a better deal before competition intensifies.

For Investors:

Long-Term Vision: The current market presents short-term headwinds, but Toronto's long-term fundamentals (population growth, economic diversity, desirability as an urban centre) remain strong. Investors with a long-term horizon and financial capacity may find attractive entry points.
Focus on Value and Location: While the overall market has softened, high-net-worth buyers are still active in luxury condos and prime locations. Consider properties that appeal to end-users or offer unique value propositions.
Review Your Strategy: For existing investors, assess your current holdings. With 1.2 million fixed-rate mortgages up for renewal in 2025, many condo investors face significantly higher mortgage payments. Evaluate your cash flow and long-term goals.

The RIISE Perspective

At RIISE, we understand the complexities of the current market. Our commitment to thoughtful urban development and building high-quality, livable spaces remains unwavering. Whether you're a first-time buyer exploring the expanded options or an investor seeking strategic opportunities, our team is equipped to provide expert guidance tailored to your specific needs.

The Toronto condo market in 2025 is undergoing a significant "reset." While it presents challenges, particularly for some sellers and pre-construction investors, it simultaneously unlocks considerable opportunities for those prepared to navigate its evolving landscape. Stay informed, stay strategic, and partner with experts who can help you make the most of this dynamic market.

Disclaimer: Market conditions are subject to change. This blog post is based on data available as of late May 2025 and should not be considered financial or investment advice. Always consult with qualified real estate and financial professionals for personalized guidance.

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Don't just watch the market—understand it and act decisively.

Contact RIISE today for a personalized consultation. Our experts are ready to provide tailored insights and guide you through your next steps in Toronto's evolving real estate landscape.

Phone: 647 695 2025

Email: info@riisebuilding.ca