A Complete Guide to Buying and Selling in Toronto's Condo Market

Toronto's condo market is one of the most interesting markets we have, and that's not by accident. Around 66% of all housing transactions in 2023 were condo sales. What makes it even more interesting is the range of buyers. People land on buying a condo for very different reasons, and you really don't see that kind of variety in other parts of the market.

There are four main types of condo buyers: first-time buyers, investors, people downsizing from a bigger home, and luxury buyers. And don't forget that for the last fifteen years, condos have made up most of the rental market too. So whether we like it or not, it pays to understand what's happening under the surface here and to read it accurately.

What the charts actually say

If you look at average condo prices from January 2021, they start low, which makes sense given that was deep in the COVID period. Prices climbed, wobbled, and peaked around February 2022 near $800,000. After that they came down, steadied, came down again. In 2023 specifically, prices rose through the first half and eased in the second. We started 2023 around $711,000, peaked near $784,000 in May, and finished December around $709,000. So whether condos went up or down last year depends entirely on which month you bought or sold. That tiny year-over-year change is the real lesson: even with rates up and prices off their peak, things don't get dramatically cheaper.

Three factors to watch

First, how many active listings are in the market. More listings means prices aren't likely to climb much. Second, months of inventory, which you get by dividing active listings by the number of condos actually selling. In 2023 that ran around 7 months, which is high. As a rough guide, under 2 months is a seller's market, 3 to 6 months is balanced, and high numbers point to a buyer's market, which is exactly what we saw. Third, who the sellers are: people forced to sell in a tough spot will take almost any price, while move-up sellers and investors renewing at a higher rate can afford to hold out for the number they want.

If you're buying

The percentage of listings actually selling, because a market can be full of condos and still have plenty of buyers. Average days on market, which climbed from about 15 days early in 2023 to 27 by year-end. And the list-to-sale ratio. My advice: work with a good agent who sends you the right listings, review the options at least weekly, and look closely at units that have sat past 30 days, or units with a tenant in place, because those are where the discounts tend to be. If you'd like a straight answer for your own situation, fill out the form below and book a free consultation. Stay well and take care.

If you're selling

Be realistic first. Look at what else is out there, because the buyer who tours your condo will tour the two or three similar ones nearby, so yours needs to be the better choice on both presentation and price. Present it beautifully, online and in person, and stage it well. In a market with high rates, most condo buyers want to live in the place, not invest, so speak to them. And remember that tenanted units usually sell for less; sometimes it's worth paying the tenant to leave so you can sell for a higher number overall. This takes real experience, which is exactly why I'd lean on a seasoned agent. My team and I can handle every one of these steps with you. Stay well and take care.