The Greater Toronto Area's condominium market has undergone a dramatic transformation since its 2022 peak, forcing real estate professionals to fundamentally rethink how they operate in an increasingly challenging environment.
What was once a seller's paradise—characterized by multiple offers and heavy investor interest—has shifted into what industry experts describe as "a more complex and uncertain market." According to Robert Van Rhijn, founder of Strata.ca and broker of record at Toronto-based Strata Realty, the reset reflects fundamental changes in how Canadians view condo investments.
"Rising interest rates, shifting buyer sentiment and a surge of new condo inventory have cooled activity and exposed underlying imbalances," Van Rhijn explained in a recent discussion about market dynamics.
The Numbers Tell the Story
The data paints a sobering picture for the industry. Annual transaction volumes have plummeted from a typical 90,000 units to just over 62,000 in 2025, according to the Toronto Regional Real Estate Board (TRREB). For an industry accustomed to rapid turnover and consistent commissions, the decline has been significant.
"This has been quite demoralizing for the real-estate industry as a whole," Van Rhijn noted, reflecting the sentiment shared across many brokerage offices in the GTA.
The Inventory Problem
Much of the new condo stock flooding the market was designed primarily for investor speculation rather than end-users seeking a place to live. Van Rhijn describes many units as "micro units with awkward layouts that end users simply don't want"—properties that appeal only to those hoping to flip investments quickly.
These unsold units have created what professionals now call "zombie inventory"—listings that sit on the market indefinitely, creating a false impression of unlimited buyer leverage while actually reflecting poor investment decisions and oversupply.
Expectation Management: The Real Challenge
Real estate agents today face their most significant obstacle: managing expectations on both sides of transactions.
Sellers often cling to comparable sales from the market's peak years, unwilling or unable to accept current market realities. Buyers, meanwhile, have overcorrected in the opposite direction, some believing the market faces a 2008-style collapse—a scenario that market analysis does not support.
"Some think we're in a 2008-style freefall, which we're absolutely not," Van Rhijn explained. "They see all this inventory and assume unlimited leverage, but a lot of what's sitting on the market is what I'd call zombie inventory."
The silver lining? Well-designed units in desirable locations continue to move, often selling at prices just below listing—suggesting the market is finding its footing, not collapsing entirely.
For Alberta readers watching the Toronto market, the GTA's experience offers a cautionary tale about over-reliance on investor demand and the importance of building residential inventory designed for actual occupants rather than speculation.
This article is based on reporting from the National Post. For the complete original story, visit National Post.