If you’ve been waiting for the right moment to enter Toronto’s condo market, 2025 may be the window you’ve been hoping for.

A rare mix of record-high inventory, softer prices, and friendlier borrowing costs has tilted the playing field toward buyers—something we haven’t seen since the mid-2010s. Whether you are looking for an investment or something for your children, in-laws or extended family to live in vs renting, there hasn’t been more choice in the market for well over a decade.

Historic Inventory = Unmatched Choice

Active resale condo listings hit 9,702 units in June 2025, up 42 % year-over-year and more than 150 % above levels two years ago. Months of inventory have climbed to nearly 7, almost triple the 10-year average, confirming a textbook buyers’ market.   

What this means for you:

• Negotiation power – Many sellers are contending with stiff competition and extended days on market.
• Time to compare – With so much supply, you can view dozens of units, weigh pros & cons, and negotiate without the fear-of-missing-out frenzy of recent years.

Prices Have Corrected – Substantially

Average resale condo prices have retreated about 13.4 % from their Q1 2022 peak, sliding from roughly $1,045 per sq. ft. to $812. That’s the steepest pullback since 2008 and effectively rewinds values to early-2021 levels.   

Opportunity snapshot:

• Lower down payments – A 15 % price retreat trims a typical 20 % down payment by tens of thousands of dollars.
• Better cash flow for investors – Smaller mortgages plus robust rents (see Point 5) can restore positive monthly cash flow.

Thinking about buying a condo in Toronto? Check out these blogs for related insights!

• Best Toronto Neighbourhoods For First Time Buyers
• How to Choose a Realtor
• A Guide To Real Estate Fees In Ontario

Interest-Rate Relief Is Finally Here

After a string of cuts starting mid-2024, the Bank of Canada slashed its policy rate from 5 % to 2.75 % by March 2025, with two quarter-point reductions this year alone.   

Why it matters:

• Stress-test hurdle drops – Lower contract rates shrink the mortgage qualifying rate, letting borrowers qualify for larger loans or lower payments.
• Lock in at a discount – Many lenders are marketing five-year fixed rates near 4 %, about a full percentage point cheaper than a year ago.

Developers Are Sweetening Pre-Construction Deals

Thousands of units delayed during pandemic supply-chain snarls are now hitting the launch calendar. To stand out in a cautious market, builders are:

• Offering extended deposit schedules (as little as 5 % per year).
• Covering interim occupancy fees or parking assignments.
• Including free upgrades such as EV-ready parking or smart-home packages.

These incentives can radically improve your purchase math—especially if you’re looking three to five years out.

Rental Demand Remains Red-Hot

Despite sluggish resale sales, condo rentals surged 16.7 % year-over-year in Q1 2025, reflecting strong immigration targets and students returning to in-person learning.   

Investor takeaway:

• Healthy yields – Downtown one-bedroom rents average about $2,600/month. Pair that with lower purchase prices and you may achieve cap rates not seen since 2016.
• Built-in exit strategy – If you decide to sell in a few years, pent-up rental demand often converts into buyer demand once affordability improves.

6. Neighbourhoods Offering Stand-Out Value

*June 2025 resale averages; prices vary by view, floor, and finishes.

7. Who Stands to Benefit Most?

First-Time Buyers: Smaller down payments, more choices, and government incentives such as the First Home Savings Account (FHSA) combine to reduce the barrier to entry.

Move-Up Owners: Selling a house and trading down to a condo can free up equity—often tax-free if it’s your principal residence—while drastically cutting maintenance workload.

Long-Term Investors: Cap-rate compression is reversing. Align your purchase with future transit or campus expansions and let rental income cover carrying costs.

Preparing to buy your first home? Explore these other pages from our site.

• Buy A Home
• Book A Buyer’s Meeting
• Get Listing Alerts

Smart Buying Tips for 2025

• Shop by months-of-inventory (MOI) – Anything above six months tilts in your favour; below four months gives sellers leverage.
• Negotiate closing credits – Ask for a closing-cost credit or free parking. Developers and motivated sellers often agree.
• Stress-test future scenarios – Run mortgage numbers at least a full point higher than today’s rate to keep cushion should policy shift.
• Inspect condo finances – Review the reserve fund study and status certificate to avoid special assessments.
• Think exit strategy – Prioritise units with features that will remain desirable: split-bedroom layouts, balconies, proximity to future transit, and low maintenance fees.

Risks to Watch

• Further price drift – If the economic outlook dims, prices could dip another 2-3 % (Reuters poll).   
• Assignment-sale oversupply – Too many investors flipping pre-construction contracts can weigh on certain towers.
• Rate-cut plateau – Markets already price in additional rate drops; if they stall, affordability gains may slow.

Bottom Line

2025 delivers a rare “buyer’s trifecta”: record inventory, adjusted prices, and cheaper borrowing. Whether you’re hunting for a first home or a strategic investment, Toronto’s condo market is offering value not seen in over a decade. Acting before supply tightens and sentiment shifts could secure you a significant edge.

Ready to seize the opportunity? Book a no-obligation condo strategy session with the Ambler Real Estate Team. We’ll match you to the best units, crunch the numbers, and negotiate the edge you deserve.

Thinking about buying a condo? Let’s talk. Call (416-884-8027) or email (team@amblerhomes.com).

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