Condo Prices in Toronto Dip in the Second Quarter of 2023

With skyrocketing housing prices across the GTA, those looking to get into the real estate market will welcome the news that condo prices in the city have finally dipped year-over-year.

According to the Toronto Regional Real Estate Board's (TREBB) Q2 2023 condo market report, prices for condos decreased in the second quarter this year from the same time last year. More specifically, the average sale price for a condo in the GTA was $737,868 in Q2 2023. That's a 4.2% decrease from Q2 2022, when the average sale price for a condo was $770,539.

In Toronto proper, the average sale price in Q2 2023 was $769,616, marking a 3.3% dip from the same quarter in 2022.

Condo Prices Expected to Climb Back Up

Despite the decrease in condo prices over the most recent quarter, they're expected to go back up throughout the rest of the year. The GTA has seen strong population growth over recent months, which is expected to continue. This factor alone will help to drive the price of condos up.

Another contributing factor is the fiercely competitive rental market, which has pushed condo sales over the past year to increase. As the number of condo sales increase compared to the number of listings, condo prices will likely trend upward.

The number of new listings was down this past quarter compared to 2022, though sales were up solidly. There is also competition among buyers looking to get into the condo market, so the average condo selling price should increase compared to last year’s prices for this reason as well. 

Rents Continue to Climb

Soaring rental prices continue to be a sore spot for those who can't afford a mortgage. With rent prices as high as they currently are, many are unable to afford a mortgage or a rental unit.

The average rent prices have increased far above the inflation rate over the last couple of years. This partly explains why the number of condo sales have jumped over the past year.

New Housing Starts Unable to Keep Up With Demand

Many buyers have set their sights on pre-construction condos as a way to save a few bucks. Buying a condo before it's built can be a great way to secure a specific price point without having to formally commit to a mortgage, giving buyers a while to save up for a hefty down payment.

But developers cannot seem to keep up with the demand for housing. The thing is, new housing is a major contributing factor to alleviating the housing affordability crisis. If new homes are not built quickly enough to accommodate buyers' needs, the price for homes will continue to inflate.