If you’ve been keeping an eye on the condo market in downtown Toronto, July brought some noticeable changes, especially in the Entertainment District. Here’s a closer look at what’s been happening and what it could mean for buyers, sellers, and investors.
One-Bedrooms Take a Bigger Hit
One-bedroom condos saw the most dramatic shift this month. The average sale price in July was $532,989, down 8.7% from June and a significant 14.9% lower than July 2024.
That’s a pretty substantial drop, and it brings prices to levels we haven’t seen in quite some time. For first-time buyers and investors who’ve been priced out or waiting on the sidelines, this kind of correction might finally tip the scales and make ownership more attainable in this vibrant downtown pocket.
Two-Bedroom Prices Also Dip — But Less Drastically
The two-bedroom segment also saw a drop, though not quite as steep. July’s average price came in at $847,829, down 3.7% month-over-month and 4.6% year-over-year.
What stands out here is that the price gap between one- and two-bedroom units has widened again. Earlier this year, that gap was shrinking, which made the jump to a larger unit feel more reasonable. Now, it’s once again a bigger leap — something for upsizers and investors to take note of.
What’s Driving These Changes?
There’s no question that seasonality plays a role. Summer tends to be slower in the market, but economic caution is also part of the picture. Many buyers are still watching interest rates and inflation closely.
That said, with inflation easing and more rate cuts from the Bank of Canada being discussed, there’s a good chance we’ll see renewed buyer activity heading into the fall. If that happens, the price points we’re seeing this summer could turn out to be a brief window of opportunity.
Final Thoughts
Both one- and two-bedroom condos saw prices decline this month, but the larger drop in one-bedrooms suggests there’s more immediate downward pressure in that segment. If you’re thinking of entering the market, upgrading your space, or even selling, now is a good time to pay attention.
📺 Watch the full video above for a detailed breakdown of the numbers and insights.
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