Condo buyers in GTA see more choice but fewer sales in Q1 2025

That shift in the market helped push the average selling price of a GTA condo down 2.2% year-over-year to $680,146.

“With increased listings and lower sales, condominium buyers had more negotiating power on price,” TRREB noted in its release.

Borrowing costs and economic uncertainty still keeping buyers on the sidelines

But despite the increased availability and slightly lower prices, many buyers remain on the sidelines. Polling conducted by Ipsos for TRREB found that high borrowing costs and shaky economic confidence are holding back demand. The board cited “uncertainty surrounding Canada’s trade relationship with the United States” as a key factor weighing on consumer sentiment.

In the rental market, a similar trend has emerged. A steady supply of available units has allowed many renters to strike better deals on monthly rents, and in turn, delayed plans to make the leap into ownership.

Looking ahead, TRREB expects the tide may turn later this year. “Once economic confidence improves in the months ahead, the demand for condominium apartments should increase as well,” the board said, pointing to the likelihood of further interest rate cuts in 2025.

Why this matters: What GTA condo trends say about the broader housing market

The Greater Toronto Area is home to Canada’s largest — and most scrutinized — real estate market. In a region where detached home prices often remain out of reach, condominium apartments have long been the more accessible option for first-time buyers, downsizers and investors alike.

But after years of rapid growth, the condo market is showing signs of cooling. The 2.2 % drop in average selling price this past quarter may seem modest, but it marks a shift from the sharp price gains of recent years. That decline comes as higher interest rates continue to stretch buyer budgets and test affordability.

Mortgage costs have climbed significantly since 2022, according to data from Statistics Canada and the Bank of Canada. Combined with growing uncertainty about Canada’s economic future, including trade tensions with the United States, these headwinds have made buyers more cautious and sellers more flexible.