Toronto, ON – Canada’s condo market continues its downward slide, with new national data showing condo prices have dropped 7% year-over-year, marking one of the largest declines since 2005.
The data, released in the May RPS-Wahi House Price Index, revealed that while overall housing prices rose by 1% annually, the softening condo segment—especially in Toronto and Vancouver—is dampening national growth. This is now the third consecutive month of slowing price appreciation across Canada.
In the Greater Toronto Area, condo prices declined 6.4%, landing at an average of $683,413, according to the Toronto Regional Real Estate Board (TRREB). Condo sales also tumbled, down 25.1% compared to May 2024.
Meanwhile, the average home selling price across all housing types in Toronto sits at $1,120,879, reflecting a 4% annual decline.
Despite the condo sector’s woes, detached homes and townhouses remain resilient. Detached home prices climbed by 3%, while row and townhouse values rose 2% nationally. However, these figures are slightly down from April’s gains, signaling a broader market slowdown.
The steepest housing price increases were seen in Quebec City, where values jumped a staggering 14% year-over-year, driven by low supply and relative affordability. One in four properties there are reportedly selling for 10% above asking price.
Edmonton followed closely with a 10% jump, while Montreal and Victoria tied for third at 8% growth each.
“A number of regional pricing trends persisted in May, with gains in Alberta and Quebec standing in contrast to declines in Canada’s most expensive markets,” said Benjy Katchen, CEO of RPS-Wahi.
He added, “The sluggish condo market is weighing on Canadian home price growth, but it is not the only headwind. Tariffs and regional economic pressures have challenged consumer confidence.”
The report also notes that in 10 of 13 major metro markets, home prices were still up from May 2024, although the pace of appreciation is slowing across the board.
As interest rates remain high and demand softens in urban condo sectors, real estate watchers say first-time buyers and investors may find emerging opportunities in lower-priced segments and secondary cities.