By Sami Chowdhury, Broker – RE/MAX Realtron Realty Inc.
torontobase.ca

Introduction: A Changing Market, A Strategic Opportunity

The Toronto condo and condo townhouse market entered October 2025 with more inventory, more negotiation power for buyers, and lower selling prices compared to last year. While some headlines focused on the slowdown in sales across the GTA, the truth is more nuanced: this is the first time in years that Toronto buyers are getting real breathing room, and savvy sellers still have opportunities as long as pricing and presentation are strategic.

From first-time homebuyers priced out of freeholds, to investors looking to re-enter the market with more favourable mortgage conditions, condos have become the most dynamic segment of Toronto real estate.

This detailed report breaks down sales, prices, supply levels, economic conditions, and emerging trends for both condo apartments and condo townhouses in the City of Toronto—based entirely on TRREB’s official October 2025 Market Watch.

Quick Snapshot (Toronto Only – October 2025)

Condo Apartments (416)

Sales: 1,072
Average Price: $699,241
YoY Price Change: –10.4%
YoY Sales Change: –6.8%

Condo Townhouses (416)

Sales: 250
Average Price: $890,678
YoY Price Change: –7.1%
YoY Sales Change: –6.9%

Source: TRREB Market Watch October 2025 (Condo Apt & Condo Townhouse sales & price data)
TRREB market watch

Market Charts

Average Price Chart (Toronto – Condo & Condo Townhouse)

Sales Count Chart (Toronto – Condo & Condo Townhouse)

The Bigger Picture: GTA Conditions Affect Toronto Directly

According to TRREB’s official statement:

GTA home sales dropped 9.5% YoY
New listings rose 2.7% YoY
The average GTA selling price fell 7.2% YoY
The MLS HPI Composite was down 5% YoY
(Source: TRREB Market Watch – Oct 2025, )

This combination of lower prices, more listings, and declining mortgage rates has created a buyer-friendly environment not seen since pre-pandemic conditions.

Jason Mercer (TRREB CIO) noted:

“The monthly mortgage payment for an average-priced GTA home continued to trend lower in October, benefitting from both lower borrowing costs and lower selling prices.”
(Source: TRREB Market Watch October 2025)

This is incredibly relevant for condo buyers in Toronto, who are more sensitive to mortgage rate shifts than luxury freehold buyers.

Section 1: Toronto Condo Apartment Market – Detailed Analysis

1.1 Sales Activity – Still Strong Relative to the Market

Despite the headlines about declining sales, condo apartments continue to be the most active resale category in Toronto.

1,072 sales in October 2025
Only 6.8% lower than 2024
Still significantly higher than detached/semi markets which saw double-digit declines

This demonstrates that the Toronto condo market remains resilient, largely because:

Condos are the most affordable entry point
Immigration continues to boost demand
Investors are slowly returning with lowered rates
Urban professionals still prioritize downtown living

1.2 Prices: A Rare Buying Window

Toronto condo prices dropped to $699,241, down 10.4% YoY.

That is a significant correction — the kind of opportunity buyers haven’t seen since 2018–2019.

What caused the price drop?

Three main factors:

1. Higher inventory levels
More listings = more choice = more negotiating room.

2. Mortgage rates correcting downward
Buyers adjusting their affordability calculations are re-entering the market gradually, not all at once.

3. Investor sell-offs
Some investors sold due to:

Negative cash flow
Vacancy taxes
Higher carrying costs

This created temporary downward pressure — but this is not permanent.

1.3 Investor Analysis

With lower prices AND smaller mortgages (due to rate cuts), cash-flow math is improving.

In many buildings:

One-bedroom units under $600K are cash-flow neutral or close
Two-bedroom condos under $800K (rare in 2021–2022) are now viable
Rent growth remains strong due to supply shortages

Investors who left in 2023–2024 are slowly returning, especially those with cash or HELOC flexibility.

1.4 First-Time Buyer Analysis

This is the strongest first-time buyer market in years because:

Prices have corrected
Competition is low
Conditions are finally balanced, not chaotic
Buyers can secure inspection conditions & financing conditions
Ability to negotiate $10K–$30K off asking is now common

Many renters waiting on the sidelines are finally stepping into the market.

1.5 Inventory & Days on Market

TRREB’s dataset shows rising:

Active listings
New listings
LDOM (days on market)

An average condo stays on market longer than in 2021–2022, but this helps buyers deeply.

Section 2: Toronto Condo Townhouse Market – Detailed Analysis

2.1 Sales Volume

Condo townhouses recorded:

250 sales in October 2025
–6.9% YoY sales decline

This is actually more stable than:

Detached (large decline)
Semi-detached (significant decline)
Freehold townhomes (moderate decline)

Why?
Because condo townhouses attract two groups:

Growing families needing more space
Buyers priced out of freeholds but wanting a similar lifestyle

This segment acts as a “bridge” between condos and freeholds.

2.2 Price Performance

The average condo townhouse price in Toronto:

$890,678
Down 7.1% YoY

This is a much smaller drop than condo apartments.

Reason:
Low supply.
Condo townhouses are extremely limited in Toronto and harder for developers to build profitably.

Buyers value:

Backyard or terrace space
Multi-level layouts
Lower maintenance fees
Family-friendly environments

As supply stays tight, condo townhouse prices will stabilize sooner than condo apartments.

2.3 Buyer Segments Actively Shopping for Condo Townhouses

1. First-time homebuyers with children

Townhouses offer:

More privacy
Outdoor spaces
Bedrooms on separate floors

2. Downsizers leaving detached homes

Many retirees prefer:

Less maintenance
Turnkey lifestyle
Multi-level homes without high condo fees

3. New immigrants

Especially families arriving from:

South Asia
Middle East
Africa

They prefer more space than a condo apartment typically offers.

Section 3: Economic Indicators Supporting This Market

TRREB Market Watch reveals:

Unemployment in Toronto: 2.3%

Still extremely low, supporting housing stability.

Bank of Canada overnight rate: 4.7% (falling)

Rate cuts expected through 2026.

Mortgage rates: 17.2% variable/credit metrics (TRREB includes a blended rate metric)

But typical 5-year fixed rates are dropping, improving affordability month-over-month.

Source: TRREB Market Watch, Economic Indicators page.

This economic climate is why TRREB executives repeatedly emphasized that once consumer confidence improves, sales are expected to rise sharply.

Section 4: What This All Means for Buyers & Sellers

4.1 If You’re a Buyer

This is the strongest buyer’s market in years for Toronto condos.

You benefit from:

Lower prices
Lower competition
Seller flexibility
More listings to choose from
Better mortgage options coming in early 2026

If you’re a serious buyer, Q4 2025 – Q2 2026 is the time to secure long-term value.

4.2 If You’re a Seller

Buyers are active, but selective.

Sellers who succeed today:

Price realistically
Stage professionally
Offer incentives (flexible closing, pre-inspection, small credit)
Highlight upgrades & building amenities
Use aggressive digital marketing (videos + paid ads)

Condos are selling — but only when marketed intelligently.

This is where your experience as a Toronto broker makes a major difference.

Section 5: Building-by-Building Variation Matters More Than Ever

While TRREB data gives the overall picture, the condo market is extremely micro-localized.

Examples:

Buildings with high Airbnb restrictions perform better
Newer buildings (< 5 years) have higher demand
Buildings with high maintenance fees see weaker resale
Units with parking sell materially faster
Units with balconies outperform those without
Buildings with EV-ready parking remain in high demand

This is why buyers need professional guidance—you can’t judge condo value from averages alone.

Section 6: 2026 Forecast for Toronto Condos & Townhomes

1. Prices expected to stabilize by mid-2026

After a 10%+ correction, the market is near bottom.

2. Investors returning will create competition

Especially if rates continue to fall.

3. Rental demand will remain extremely strong

Immigration targets remain aggressive.

4. New construction delays will tighten future supply

Fewer condo projects were launched in 2023–2024.
This will cause price and rent pressure by 2027.

5. Townhouses will recover faster

Due to limited supply.

Overall forecast:
2025 = market bottom
2026 = stabilization
2027 = growth cycle begins

Conclusion: The Window Is Open — But Not For Long

The Toronto condo and condo townhouse market in October 2025 is defined by one word:

OPPORTUNITY.

Prices are down.
Competition is down.
Negotiating power is up.
Mortgage rates are improving.

This is the perfect storm for smart buyers — and a crucial moment for sellers who want to position their homes strategically rather than wait for the crowd to return.

Work With a Trusted Toronto Real Estate Advisor

As an experienced Toronto real estate broker with 12+ years of market insight, I help:

First-time buyers secure the right condo at the right price
Sellers maximize value through preparation, pricing, and digital marketing
Investors find cash-flow-positive opportunities in top-performing buildings

If you're planning to buy, sell, or invest in 2025–2026, this is the moment to start the conversation.

Ready to Start Your Real Estate Journey?

Whether you're planning to buy, sell, or invest, I’m here to guide you every step of the way — surprises and all.

Looking to capitalize on today’s changing market?
Explore a wide range of specialized listings with access to powerful tools and search portals tailored to your needs:

Gas Stations for Sale

Commercial & Industrial Properties

Residential Homes Across the GTA

Hotels & Motels Investment Opportunities

Pre-Construction Condo Projects

Condo Resale Listings in the GTA

Stay ahead of the curve! Get the latest real estate news and insights right here.

Need help navigating your options?
Reach out for expert advice and market insights:

Sami Chowdhury

BROKER
Email: samichy@torontobase.com
Web: www.torontobased.com | www.torontobase.ca

Let’s make your next move a smart one!

Read more about the market developments And MY Blogs.