Toronto Condo Market Update 2025: August Opportunities and Risks

The Toronto condo market is seeing a rare shift in August 2025, with inventory up, prices down, and motivated sellers everywhere. If you’re looking for the most up-to-date Toronto condo market update 2025, this guide lays out the numbers, trends, and moves you should consider now.

The New Reality of the Toronto Condo Market

Many condo owners in Toronto are feeling the pressure right now. Listings have piled up with over 9,000 active units—levels not seen since 2008. That surge puts buyers in control, and the data backs it up. Sales for August totalled 1,760, which is down 2% from last year. Days on market crept up to 29 from 23 a year ago, and the sales-to-new-listings ratio sits at just 38%. In short, the city is in solid buyer territory.

Average sale price across all condos: $642,000, down nearly 5%. The median sits even lower, at $565,000. If you bought at the 2022 peak, you may be looking at a significant drop in value. Downtown, one-bedroom units in the C1 area have fallen to $685 per square foot—a 21% drop from those highs. Two-bedrooms average $740 per square foot, still above pre-pandemic times but slipping every month. Scarborough sales have been a bit more stable with only a 3% drop, but the supply remains elevated.

Why Is Toronto Condo Inventory Climbing?

There are several forces behind this so-called ‘condo fire sale’ in Toronto:

Owners with variable rate mortgages face steep monthly losses. For many, listing is their only way out.
The rent surge from 2023 has cooled. Rents are down, making it harder for investors to break even.
High immigration continues, but most newcomers rent before they buy, adding more units to the rental and resale market.
“Buyer’s market” headlines cause hesitancy, so more listings stay stuck, building pressure.
Lenders have tightened up. Appraisals are conservative. Many would-be deals collapse.

Pre-construction buyers are also under strain. Launch volumes are down 88% since the start of the year, but completions are way up: 18,000 new condo units are set to finish this year. That’s double 2021’s number, further swelling inventory as these units hit resale or rental markets.

Toronto Condo Market Update 2025: Buyer and Seller Strategies

If you’re buying in Toronto right now, proceed with care—but not fear. Focus on condos sitting on the market 30 days or longer. Most deals are happening about 8% below the asking price. Compare 2023 prices and you may even have 12–15% room to negotiate, depending on the building and timing.

Here’s what smart buyers are doing this month:

Lock in a 120-day mortgage pre-approval. This gives you flexibility if rates drop.
Target buildings where condo fees have grown less than 4% per year. This signals healthier management and reduces long-run cost risk.
Ask about occupancy rebates—these are returning and can reduce your closing costs.
If you’re a first-time buyer, there are still rebates up to $4,475 available under the Ontario land transfer tax program. You can read more in this Ontario Home Buyer Rebate GTA guide.

Sellers face a much tougher road. The old numbers don’t matter—the market has reset expectations. The key advice: price based on the last 30 days of sales, not what your neighbour got last year. Overpricing by even 4% can add weeks to your listing time, making it more likely you’ll chase the market downward.

Ways for sellers to improve their odds:

Price realistically—within 3% of the most recent comparable sale.
Offer extras: storage lockers, parking, or fresh paint can add perceived value and increase buyer interest, often with a high return on investment.
Consider a rate buy-down. Offering $6,000 to reduce a buyer’s payments by $500 a month may cost less than dropping your price $20,000.
Try to list before Thanksgiving, when inventory tends to dip, improving your odds as competition thins out.
If you need a candid professional market evaluation, you can get your home value done confidentially.

Investing in Toronto Condos in 2025

For investors, numbers are tight. Even with cap rates scratching 4.3% downtown, borrowing costs are above 5%. Negative cash flow is typical right now. Consider these tips if you’re thinking about investing:

Look for assignment deals—some pre-construction buyers are cutting losses at 10–15% below what they paid.
Consider joint ventures with first-time home buyers who qualify for 5% down; you bring the capital, they live in it, and you split equity growth.
Creative solutions like adding a wall and second bathroom to a one-plus-den for rental by the room can lift yields up to 6%.

Keep in mind: if interest rates drop by 0.75% by spring, entry-level condo prices could recover 5%—but that’s only a possibility. For now, most forecasts suggest inventory remains high through at least March 2026, with pricing likely to drift another 3% lower in the months ahead.

Toronto Condo Market Questions & Answers

Should I wait to buy a Toronto condo?

There is currently strong buyer leverage. If you find a unit you like, you have negotiation power—but patience can reward you further if inventory and prices keep sliding. A pre-approval gives you flexibility if the right deal appears.

Is this a good time to sell a condo in Toronto?

It’s a challenging time, especially if you purchased recently. The best results come from realistic pricing, quality presentation, and flexibility (such as rate buy-downs) instead of holding out for old highs. Act quickly when competition thins.

What about rebates or incentives for buyers?

First-time buyers may qualify for Ontario’s land transfer tax rebate, and both buyers and sellers can sometimes negotiate builder incentives or occupancy rebates. Learn more in this First Time Home Buyer Toronto guide.

Final Thoughts: Planning Your Toronto Condo Move

The Toronto condo market in 2025 is rewarding those who act based on current realities rather than last year’s hopes. Whether you are buying, selling, or investing, up-to-date data and a calm, strategic approach are essential. If you want a detailed plan for your next step—whether you’re in Toronto or anywhere else in the GTA—you can book a strategy call at your convenience. For more on Toronto real estate, see the Toronto real estate guide or reach out any time. I help clients across Toronto and the GTA make sense of these market changes.

Key topics: toronto condo market update 2025, toronto real estate, gta real estate, condos for sale toronto, buying a condo, selling in a slow market, first time home buyer, investment property