What Has Happened to Toronto Condo Prices in 2026 Compared to 2025 and What Is the Current Inventory Like

Toronto condo prices in September 2026 are sitting below their 2025 levels, continuing a correction that began in late 2023 and has not yet fully reversed. The benchmark price for a condominium apartment in the City of Toronto proper is tracking in the range of $680,000 to $710,000 as of this month, down from approximately $730,000 to $755,000 at the same point in 2025. That represents a year-over-year decline of roughly 5 to 7 percent, depending on the submarket and unit size. For context, the peak benchmark in early 2022 was closer to $820,000, so the cumulative pullback from that high point is now in the range of 13 to 17 percent.

These figures are consistent with what TRREB's condo market reports have been tracking through Q2 2026, showing persistent downward pressure on average selling prices across the GTA condo segment. The City of Toronto itself has fared slightly better than some 905-area condo markets, but the direction has been the same.

The Year-Over-Year Price Shift

Looking at specific unit types gives a clearer picture than averages alone. Studio and bachelor units in the downtown core, which were selling in the $480,000 to $530,000 range in September 2025, are now moving closer to $450,000 to $495,000. One-bedroom units that were averaging around $620,000 to $650,000 a year ago are now settling between $580,000 and $625,000 in most downtown buildings. Two-bedroom units, which attracted more end-user demand and held up slightly better, have slipped from roughly $850,000 to $900,000 in 2025 to approximately $800,000 to $860,000 today.

The price softness is most pronounced in units under 500 square feet, which were heavily purchased by investors during the low-rate era and are now being listed in volume as carrying costs outpace rental income. For a broader look at where all Toronto home types sit right now, the average home price overview for September 2026 on this site puts condos in context alongside detached and semi-detached properties.

Price Ranges by Building Type and Location

Not every condo in Toronto is moving the same way. Boutique low-rise buildings in established neighbourhoods like Roncesvalles, Trinity Bellwoods, and the Annex have held value better than high-rise towers in the South Core or along the Gardiner corridor. Buildings with larger average unit sizes, lower investor-to-owner ratios, and strong reserve funds are trading at a premium relative to the broader market. Newer towers completed between 2021 and 2024 in areas like CityPlace and the Entertainment District, where investor concentration is high, are seeing the steepest discounts.

2. How Inventory Has Changed from 2025 to 2026

Condo inventory in Toronto is elevated right now, and it is one of the defining features of the current market. Active condo listings across the City of Toronto have been running 60 to 80 percent above year-ago levels for most of 2026. In September 2026, buyers are looking at a selection of available units that has not been this wide since the period immediately following the 2017 foreign buyer tax introduction. That is a meaningful shift from September 2025, when inventory was already elevated but had not yet reached current volumes.

Active Listings: The Numbers

At any given point in September 2026, there are approximately 8,000 to 9,500 condo apartments listed for sale across the City of Toronto alone, with another 4,000 to 5,000 units available in the surrounding 905 municipalities. Compare that to September 2025, when active city condo listings were running in the 5,500 to 6,500 range, and September 2023, when the market was already loosening at around 4,000 to 5,000 active listings. The trajectory is clear: supply has been building steadily for nearly three years.

New listings are also coming to market at an elevated pace. Monthly new condo listing counts in Toronto through the summer of 2026 have been running 20 to 30 percent above the ten-year average for those months. Many of these are investor-owned units where the landlord is choosing to sell rather than renew a lease at current rents, which have softened in many building types as tenant turnover has slowed.

Months of Supply and What It Signals

Months of supply is the clearest single indicator of market balance, and for Toronto condos in September 2026, it is sitting firmly in buyer's market territory. The condo segment is currently showing roughly 6 to 8 months of supply in the city core, and closer to 9 to 11 months in some outer districts. A balanced market is generally considered to be 3 to 4 months. Anything above 5 months gives buyers negotiating leverage, and anything above 7 months typically puts meaningful downward pressure on prices. Toronto condos are squarely in that range right now.

Days on market have also stretched considerably compared to 2025. Condos that sold in 15 to 20 days in September 2025 are now averaging 35 to 50 days on market before an accepted offer. Listings are being refreshed and re-priced more frequently, and it is common to see a unit listed, withdrawn, and relisted at a lower price within a 30-day window.

3. What Is Driving These Conditions

Several overlapping forces have brought Toronto's condo market to where it is in September 2026, and understanding them helps buyers and sellers make sense of the numbers. This is not a single-cause situation. It is the result of rate cycles, investor behaviour, pre-construction completions, and a mismatch between the pace of population growth and the pace at which buyer confidence has recovered.

Interest Rate Movements

The Bank of Canada's rate cutting cycle that began in mid-2024 has brought variable mortgage rates down from their 2023 peaks, but fixed rates have not fallen as sharply as many buyers hoped. As of September 2026, five-year fixed mortgage rates from major lenders are sitting in the 4.4 to 4.9 percent range, which is meaningfully lower than the 5.5 to 6.0 percent range seen in late 2023, but still high enough to suppress purchasing power relative to the 2020 to 2021 era when rates were under 2 percent. For a buyer financing a $700,000 condo with 20 percent down, the difference between a 2 percent rate and a 4.6 percent rate is roughly $1,000 per month in carrying costs. That gap continues to keep a portion of would-be buyers on the sidelines.

Investor Pullback and Pre-Construction Fallout

A large share of the inventory surge in 2026 traces directly to investor-owned units coming to market. Investors who purchased pre-construction condos between 2018 and 2022 at prices that made sense under the assumption of continued appreciation are now taking possession of completed units in a market where resale values are below their purchase price. Some are selling at a loss to avoid ongoing carrying costs. Others are holding but listing their units for rent, which has added to rental supply and softened rents, creating a feedback loop that makes the investment case even harder to sustain.

The pre-construction pipeline itself has also contracted sharply. New condo project launches across Toronto and North York slowed dramatically in 2024 and 2025 as developers struggled to hit sales thresholds needed to secure construction financing. The result is that while today's resale inventory is high, the pipeline of new supply coming to market in 2028 and beyond is considerably thinner than it was projected to be just three years ago.

Population Growth vs. Buyer Hesitation

Toronto's population continues to grow, but population growth and housing demand are not the same thing. New arrivals to the city, including international students, temporary residents, and new permanent residents, have historically fuelled condo rental demand more than purchase demand. With federal immigration targets having been adjusted downward through 2025 and 2026, even the rental-side absorption of condo supply has moderated. End-user buyers, particularly first-time purchasers, remain cautious about overpaying in a market that has been declining, which creates a self-reinforcing hesitation cycle.

4. How Different Parts of Toronto Are Performing

Toronto is not one condo market. It is dozens of micro-markets stacked on top of each other, and the September 2026 data reflects meaningful variation by location, building vintage, and unit configuration.

Downtown Core and the Waterfront

The downtown core, covering areas like the Financial District, King West, Queen West, and the waterfront from Harbourfront to the Distillery District, is where inventory concentration is highest and price pressure is most acute. Thousands of units in this corridor were purchased by investors during the pre-construction boom, and a significant portion of those are now on the resale market simultaneously. One-bedroom condos in towers along Lake Shore Boulevard West and Rees Street are trading at prices that in some cases represent a 10 to 15 percent discount from comparable sales in September 2025. Sellers in this area need to price sharply and present their units well to compete.

Midtown and the Yonge Corridor

Midtown Toronto, stretching along the Yonge Street corridor from Rosedale through Davisville and up toward Eglinton, has shown more resilience than the downtown tower market. Buildings in this area tend to be older, with larger unit footprints and a higher proportion of owner-occupiers. A two-bedroom unit in a well-maintained building near Davisville station or along Mount Pleasant Road is holding closer to $850,000 to $950,000, with year-over-year declines in the 3 to 5 percent range rather than the 7 to 10 percent seen further south. Proximity to the Eglinton Crosstown LRT stations, now operational, has provided some pricing support in the Midtown Yonge area.

Etobicoke and the West End

Etobicoke's condo market, particularly along the Bloor Street West corridor and in the Humber Bay Shores area, presents a mixed picture in September 2026. Humber Bay Shores, with its concentration of newer high-rise towers overlooking Lake Ontario, has been hit by the same investor-exit dynamic as the downtown waterfront. Units there have seen price declines of 8 to 12 percent year over year. Further west along Bloor, closer to Islington and Kipling stations, older condo stock in the $450,000 to $580,000 range has held up somewhat better, partly because the price point attracts a higher share of end-user buyers who are less sensitive to investment return calculations.

If you are considering a neighbourhood specifically, it is worth reading about what day-to-day life looks like in different parts of the city. The Leslieville living guide on this site covers one east-end neighbourhood in practical detail, which can help ground your search in something concrete beyond just price per square foot.

5. What This Market Means for Buyers and Sellers Right Now

The current conditions in Toronto's condo market are genuinely different from anything buyers or sellers experienced between 2015 and 2022, and the playbook from that era does not apply cleanly.

Advice for Condo Buyers in September 2026

Buyers have more leverage in September 2026 than at any point in the past decade, but that leverage needs to be used thoughtfully. With months of supply running well above balanced-market levels and days on market stretching past 35 days on average, there is no urgency to make a rushed decision. Buyers can take the time to compare multiple units in the same building, review status certificates carefully, and negotiate on price, closing date, and inclusions. Conditional offers are being accepted again in many cases, which was nearly impossible during the 2021 and 2022 peak.

Due diligence on the building's financial health matters more in a buyer's market than a seller's market. With many buildings now a decade or more old, reserve fund adequacy and any pending special assessments deserve close scrutiny. A building with a well-funded reserve and low monthly fees relative to its amenities is worth a premium over a building with a deficit reserve, even if the sticker price looks similar. Your real estate lawyer and a qualified home inspector who specialises in condos are essential at this stage. If you are also thinking about the full cost of buying, the Toronto buyer's guide on this site walks through the process from search to close.

Advice for Condo Sellers in September 2026

Sellers need to enter this market with a clear-eyed view of current comparables, not the prices their neighbours achieved in 2021 or 2022. Overpricing in a market with this much inventory is one of the most costly mistakes a seller can make. Listings that sit for 60 or 90 days accumulate stigma and typically sell for less than they would have if priced correctly from day one. The buyers who are active right now are informed and are tracking price history on listings. A clean, well-priced, properly staged unit in a building with solid financials will still sell in this market. It just needs to be positioned honestly.

Sellers who have flexibility on timing may also want to consider whether waiting for the spring 2027 market makes sense given their circumstances. There is no guarantee that prices will be higher by then, but spring traditionally brings more buyer activity and more competition among purchasers. That said, carrying a unit through another six months of mortgage payments, maintenance fees, and property taxes has a real cost that needs to factor into any timing decision.

For a detailed breakdown of what the broader Toronto condo and pre-construction landscape looks like heading into late 2026, the analysis at Toronto Realty Blog's GTA condo market update provides useful additional perspective from practitioners working in the market daily.