As Toronto’s real estate market stabilizes, condo apartments are quickly regaining their appeal among buyers.
With an average price of $741,000 in November 2024, condos offer a more affordable entry point compared to detached and semi-detached homes, making them an attractive option for first-time buyers, investors, and downsizers.
This article explores why condo prices are stabilizing, what’s driving demand, and how the condo market is shaping up for buyers and sellers as we approach 2025.
The Numbers: A Closer Look at Toronto’s Condo Market
In November 2024, condo sales accounted for 30% of all residential transactions in the Greater Toronto Area (GTA), totaling 2,736 units sold.
This represents a 42% year-over-year increase, reflecting a significant rebound in buyer confidence.
The average condo price of $741,000 shows only a modest 1.5% year-over-year increase, indicating price stability after years of sharp fluctuations.
Meanwhile, new condo listings rose by 8.2%, with 6,540 units entering the market, giving buyers more options than in previous months.
What’s Driving Demand for Condos?
- Affordability in an Expensive Market
Compared to detached homes, which average $1.46 million, and semi-detached homes at $1.12 million, condos remain the most affordable property type. For buyers with limited budgets, especially first-time buyers, condos provide a realistic path to homeownership. - Urban Living and Convenience
Many condos are located in Toronto’s urban core, close to transit hubs, workplaces, and entertainment. Proximity to these amenities appeals to young professionals and downsizers who prioritize convenience over space. - Strong Rental Demand
The average monthly rent for a one-bedroom condo in Toronto rose by 6.4% year-over-year, reaching $2,750 in November 2024. For investors, this robust rental market offers reliable income and a steady return on investment, making condos an attractive choice. - Stabilizing Interest Rates
The Bank of Canada’s recent rate cuts have made borrowing more affordable, encouraging buyers who were previously priced out of the market to consider purchasing a condo. With lower monthly mortgage payments, condos have become even more appealing to budget-conscious buyers.
Case Study: A First-Time Buyer’s Success Story
Sophia, a 28-year-old marketing professional, had been renting in Toronto for three years while saving for her first home.
With detached and semi-detached homes out of reach, she focused on the condo market. In November 2024, she purchased a one-bedroom condo in Liberty Village for $735,000, securing a fixed mortgage rate of 4.8%.
Sophia’s condo provides her with an ideal location close to work and nightlife, while the building’s amenities, including a gym and rooftop terrace, enhance her quality of life. “I finally feel like I’ve made it,” she shared, reflecting the optimism of many first-time buyers entering the condo market.
For Buyers: Opportunities and Challenges in the Condo Market
Condo buyers are finding increased opportunities but must also navigate certain challenges:
- Greater Inventory: The 8.2% rise in new condo listings provides buyers with more options, reducing the competitive pressure seen in previous years. Buyers can take their time to compare properties and negotiate favorable terms.
- Affordability Considerations: While condos are more affordable than detached homes, buyers must account for monthly maintenance fees, which average $0.65 per square foot in Toronto. These fees cover building upkeep but can add significantly to monthly expenses.
- Long-Term Investment Potential: Condos in high-demand neighborhoods, particularly those near transit lines and job centers, offer strong appreciation potential. Buyers looking to build equity should focus on areas with robust infrastructure and future development plans.
For Sellers: How to Stand Out in a Competitive Market
For sellers, the condo market presents opportunities to capitalize on strong demand but also requires strategic planning to attract buyers:
- Competitive Pricing: With condo prices stabilizing, sellers must price their units competitively to stand out among the 6,540 new listings in November. Properties priced slightly below market value often attract multiple offers.
- Highlight Amenities and Location: Buyers are drawn to condos that offer convenience and lifestyle benefits. Sellers should emphasize features like building amenities, proximity to transit, and nearby attractions to appeal to potential buyers.
- Invest in Presentation: Staging a condo can significantly enhance its appeal. Data shows that staged condos sell 20% faster than non-staged units, making professional staging a worthwhile investment for sellers looking to close deals quickly.
The Human Element: Stories of Buyers and Sellers
For Ryan, an investor in Toronto’s downtown core, the stabilizing condo market presented an opportunity to expand his portfolio.
In November 2024, he purchased a two-bedroom unit near Union Station for $870,000 with plans to rent it out.
Within a week of listing, he received multiple tenant applications, securing a lease at $3,400 per month. For Ryan, the combination of rental income and long-term appreciation potential made the investment a clear choice.
Similarly, Diane, a downsizer from Etobicoke, sold her family home and purchased a luxury condo in Yorkville for $1.3 million. The move allowed her to enjoy a low-maintenance lifestyle while staying close to cultural attractions and her favorite restaurants.
These stories highlight the versatility of the condo market, offering opportunities for diverse buyer groups with varying needs and goals.
Conclusion: Condos Driving Toronto’s Real Estate Stability
With 2,736 units sold in November 2024, condos are playing a pivotal role in Toronto’s real estate recovery.
Their affordability, urban convenience, and investment potential make them an attractive choice for first-time buyers, investors, and downsizers alike.
As the market heads into 2025, the stabilizing condo market offers promising opportunities for both buyers and sellers.
Whether you’re seeking an affordable entry point into homeownership or a reliable investment in a high-demand area, Toronto’s condo market continues to provide value in a dynamic housing landscape.
