Why Now Is the Smartest Time to Invest in GTA Condos
Toronto’s condominium market is experiencing notable shifts, with a surge in listings, declining sales, and falling prices—trends expected to stretch through 2026. In the second quarter of 2025, Toronto condo prices dropped 6.3% from the previous year, and sales were down nearly 21%. For those who have a keen eye for upgrading condos, now represents a unique chance that may not return for decades.
Where condos once seemed out of reach for buyers, prices are now far more accessible, with some properties offering exceptional value to those who know where to search. The city’s average price per square foot tumbled from $1,063 in February 2022 to $807 by September 2025—a 24% plunge. Current condo sales hover at just 10% of Toronto’s ten-year norm, and new builds are in especially dire straits, with numbers at their lowest since 1990.
A string of interest rate hikes in 2023 and early 2024 discouraged investors—who normally account for over 70% of Toronto buyers—from entering the market. Even after seven rate cuts in late 2024 and early 2025, investors haven’t returned, causing record-high condo listings—especially for newer, smaller units that often remain unsold. Toronto has recognized that these cramped, less livable spaces aren’t a draw for families. Instead, larger, older condos are drawing attention.
Opting to invest in a roomy, older unit is a strategic way to benefit from today’s market and appeal to buyers seeking comfort and livability. And buyers needn’t accept outdated layouts or fixtures—thoughtful renovations can unlock maximum value. Companies like Easy Renovation—a local, full-service design-build firm—guide owners through the entire renovation journey, from creative design with 3D renderings to material sourcing and project management. Their turnkey process removes the usual stress of choosing contractors and coordinating details, providing a seamless transformation. For those acquiring property in today’s downcycle, modernizing and updating the space becomes key for boosting long-term value—whether renting or selling later. With the median Ontario condo size shrinking from 965 square feet in the 1970s to just 658 today, their renovation expertise will help you make the most of larger older units and refresh them for modern needs.
While Toronto’s condo sector is subdued today, it’s the perfect moment to acquire affordable legacy units and invest in renovations before the market recovers. New condo starts have dropped dramatically, suggesting a looming shortage: only 10,558 starts were recorded in August 2025, compared to 33,088 in August 2023 and 24,579 in August 2024. When today’s excess inventory finally clears, supply will be tight, driving prices back up.
Experts forecast that condo inventory will begin contracting by early 2026, with growing buyer demand expected by late 2026 or early 2027. Investing now—especially in spacious older units—allows buyers to lock in the lowest prices seen in years. With smart renovations, your future return is likely to rise sharply as the market rebounds and supply diminishes, increasing interest in large, comfortable condos.
In summary, Toronto’s temporary condo downturn is a rare window for forward-thinking buyers: seize undervalued larger condos, make strategic upgrades, and be ready to benefit when the market swings upward once more.
