A Toronto Condo for Under $400,000??
Finally, the elusive dream of homeownership that many Torontonians have sought and an equal number have given up on appears to be within reach.
According to the Toronto Regional Real Estate Board (TRREB), there is both good news and bad news. First, the good news: Some bachelor and one-bedroom condos in Toronto are now available for under $400,000. It may be hard to believe, but it’s true. However, there is a downside— a rush for these ‘cheap’ deals could lead to significant supply issues in the future, resulting in another housing shortage.
News Story: Recent TRREB data reveals that the average condo selling price in the Greater Toronto Area (GTA) decreased by 5.1 percent year-over-year in the fourth quarter of 2025. In one Toronto neighborhood, the average listing price during this period was as low as $384,333.
For the city of Toronto as a whole, the average price fell to $690,607 in the fourth quarter of last year, down from $715,920 during the same period the previous year.
TRREB reported 3,880 condo sales in the same period, a 15 percent decline from the year before.
The drop in prices is attributed to buyers regaining some bargaining power, according to Jason Mercer, TRREB’s Chief Information Officer.
“People have had more negotiating power over the last year than they did, say, two or three years ago,” he said to a news portal.
But There Aren’t Enough New Builds Underway, Which Could Lead to a Housing Shortage.
Beyond the excitement among potential buyers, Mercer has serious concerns that this price drop could negatively impact the market in the long term, especially since the number of new construction projects has been deliberately reduced to balance supply and demand.
“We’ve heard stories about low pre-construction sales,” he noted. “Eventually, that will translate to fewer starts and completions down the road. Therefore, we need to address how we’re ultimately going to fill that gap from a policy perspective.”
If the issue is not addressed, we could face another housing shortage in the coming years, Mercer warned.
Explaining this price decline, another Toronto realtor noted that many of the more affordable units currently available are leftover stock from investment properties being offloaded by owners looking to cut their losses.
Seeing this opportunity, many Toronto realtors are actively advising their renter clients to consider buying if they can afford it.
“If your monthly rent payment and your mortgage payment are in the same ballpark, why wouldn’t you build your financial future instead of paying someone else’s mortgage?” is the prevailing sentiment.
However, it may still be too early to jump in. A leading city realtor advises his clients to exercise caution: “Take a step back and assess how this opportunity relates to your individual situation and financial numbers.”
The next six months will reveal how this scenario unfolds and how many renters decide to take the plunge. We will be watching.
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