Canadian Condo Prices Drop For 19th Straight Month, Lowest Since 2021

The Canadian condo slump continues as weak demand and rising inventories erode prices. Canadian Real Estate Association (CREA) data shows the price of a benchmark (typical) condo apartment fell for a 19th consecutive month in May. Despite a smaller correction than the broader market, prices are now at the lowest since 2021. 

Canadian Condo Prices Fell for a 19th Consecutive Month, Back to 2021 Valuation

Canadian benchmark condo prices: Seasonally adjusted in Canadian dollars. 

Source: CREA; Better Dwelling. 

Canadian condo prices slipped even more than general home prices last month. The composite benchmark fell 0.4% (-$2,200) to $492,500 in May, and marked the 19th consecutive month of declines. A typical condo has rolled back to the lowest level since July 2021—nearly 4 years ago. Though looking at the above chart, it’s clear that condos have been resistant to falling. 

Canadian Condo Losses Have Been Getting Larger

Canadian benchmark condo prices: Seasonally adjusted 12-month change in percentage points. 

Source: CREA; Better Dwelling. 

Annual growth is once again grinding lower, after a brief period of improvement. The condo apartment benchmark is 4.5% (-$23,300) lower than last year, meaning this is the steepest 12-month decline since 2023. Although losses are accelerating, the national contraction remains smaller than the one observed in Toronto—the country’s largest market.

The cost of a condo across the country is getting much closer to prices in Toronto. The gap between the national and Toronto benchmarks is the smallest since 2018. This is somewhat remarkable, considering Toronto is one of the most expensive markets in the world. A general theme observed during a bubble is the flattening of prices and disregarding proximity to amenities (i.e. everywhere is the same regardless of job market, income, etc.). 

Canadian Condo Prices Are Only Down 12% Since Peak

Despite the declines and accelerating losses, condos have overperformed on price retention. The benchmark condo has dropped 12.3% (-$69,000) since hitting a record high in March 2022—a substantial drop. However, that’s less than the 17.5% contraction observed for the general market.  

Canadian condo prices have held up better than other segments, but cracks are forming. Despite sluggish sales, sellers have been reluctant to cut prices—likely hoping recent policy changes and lower rates will reignite demand. However, with trade tensions persisting and affordability stretched, sellers may soon face more pressure than buyers.