While an average home in Toronto is going for $10 million and an average home in the GTA is going for $1.2 million, condo prices are finally hitting a record-dropping low for the first time in 10 years.

A report from real estate experts at Urbanation reveals that prices and activity are down in Toronto. Compared to the last three months during the same period last year, 35 per cent fewer new units sold. Also, prices are down 1.3 per cent quarter-over-quarter. This is the first time prices have dropped significantly since 2013.

Urbanation also notes that data from Q1 and Q2 show that Toronto is experiencing the slowest first six months of condo sales in a decade. Sales in Toronto fell 59 per cent in 2023 compared to the first half of 2022, and 42 per cent since 2013.

Many buyers are opting for the cheaper pre-construction condos rather than new builds, most likely due to the high mortgage rates and cost of living. Urbanation also says that “supply bottlenecks” are growing to accommodate the growing demand of housing and is keeping prices high.

While the increase in construction is great for the expected housing demand, Urbanation says that new condo sales have dropped significantly which will “impact construction and eventually cause serious supply shortages in a few years as the population expands at a record pace.”