Whether you’re buying, selling, or investing, understanding Toronto’s condo market is key to making informed decisions. With construction continuing across the city and interest rates gradually easing, 2026 could offer new opportunities for buyers and investors alike.
The Market Today
Toronto’s condo market has cooled from the highs of the early 2020s, with new sales slower and resale prices softening. New condo sales reached 1,807 units in 2025 as of October, down 56% from the previous year. Resale activity is stronger in one- and two-bedroom units, though prices have moderated, with the average resale price in Q3 2025 down 6.4% compared to Q3 2024.Low sales have affected financing for new projects, and builders are focusing on completing existing developments. Despite this, resale activity and strategic pre-construction opportunities continue to create options for buyers.
Toronto currently has a higher supply of condos than usual, with around 58 months of inventory on the market. Normally, a balanced market has 10 to 12 months of supply. As new construction slows and demand continues, the market is expected to gradually absorb this inventory, creating a healthier balance in the coming years.
Supply and Demand
What This Means for Buyers and Investors
While some segments of the market remain slower, the fundamentals such as population growth, steady employment, and gradually improving affordability support a positive outlook for the next few years. Toronto’s condo market is entering a transition period.
With slower construction, stabilized interest rates, and more accessible pricing, 2026 could be a year of opportunity for both buyers and investors, paving the way for steady and sustainable growth in the years ahead.