Condo sales climbed in May 2026, but prices remain under pressure with the 905 region hardest hit
Toronto's condominium apartment sector posted a fourth consecutive month of year-over-year sales gains in May 2026, yet prices continued their slide, reinforcing the divergence between activity and value that has come to define the segment for much of the year.
Data released June 3 by the Toronto Regional Real Estate Board (TRREB) showed 1,535 condo apartment units sold across the GTA in May, a 4.2% year-over-year increase. That sales uptick, however, failed to arrest deepening price weakness.
The average selling price for a condo apartment fell to $639,468, a 6.4% annual decline, according to the TRREB May 2026 Market Watch report.
The correction was sharpest in the 905 region, where average condo prices slipped 9.5% year over year to $573,531.
In the City of Toronto's 416, the decline was more contained at 5.0%, with average values settling at $673,841.
The TRREB MLS Home Price Index apartment benchmark, which strips out compositional changes in what is being sold, fell 9.12% year over year to $539,400 across all TRREB areas, a more severe measure of underlying value erosion than the average price figure alone suggests.
Jason Mercer at TRREB highlighted rising sales and shrinking listings, noting that improving balance between supply and demand could eventually stabilize prices heading into 2027.https://t.co/ONdOiJUWZM
— Canadian Mortgage Professional Magazine (@CMPmagazine) June 3, 2026
Buyers still hold the upper hand
Active listings for condo apartments across TRREB stood at 8,704 at the end of May, with new listings totalling 4,752. That's more than three times the number of completed transactions.
Average days on market ran to 34 in the 416 and 41 in the 905, and the average sale-to-list price ratio held at 97%, confirming that buyers are routinely negotiating below asking with limited pushback from sellers.
"Inventory levels trended lower over the past year, but buyers continued to have substantial negotiating power through the spring, helping with affordability," said Jason Mercer, TRREB's chief information officer.
For mortgage brokers advising condo buyers, that negotiating dynamic creates real opportunity, but only for clients with the financial resilience to absorb further price softness.
Marshall Tully of HB Mortgage Team told Canadian Mortgage Professional in its spring market coverage that financially stable buyers with a long time horizon still have cause to act.
"For those that are in strong employment positions and know where they want to live for five or more years, or are starting a family, there are opportunities," he said.
Structural overhang clouds the recovery picture
The condo segment's persistent weakness stands in contrast to the detached market, where May 2026 average prices fell a comparatively modest 4.7% year over year to $1,358,131, suggesting the correction is most concentrated in high-density housing.
Toronto's condo pipeline has faced severe unsold inventory pressure throughout 2026, and the structural challenges facing Toronto's micro-unit condo market show little sign of near-term resolution.
Whether improving sales volumes eventually translate into price stabilisation will be among the defining questions facing the GTA mortgage market heading into the second half of 2026.
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