Sales of homes under $500K booming in the Greater Toronto Area

GTA Condo Market Sees Surge in Sales Under $500K in 2025

In 2025, the Greater Toronto Area housing market is undergoing a notable transformation. While home prices and sales volumes are trending downward, one segment is defying the slowdown: affordable condos priced under $500,000. According to new data from real estate platform Wahi, this lower end of the condo market is experiencing a sharp increase in sales, especially in suburban regions like Halton and Peel.

The average selling price for a home in the GTA dropped to $1,107,463 in April 2025—a 4.1% decrease compared to April 2024. Total home sales also saw a significant year-over-year decline of 23.3%. Condo sales across the GTA followed a similar pattern, falling 23% in the first quarter of 2025. Yet despite these numbers, demand for more affordable properties is on the rise.

Wahi’s report highlights that condos priced between $400,000 and $499,999 saw a 20% increase in sales over the past year. The trend is even more dramatic in the $300,000 to $399,999 range, which recorded a 55% spike in transactions—though this segment still makes up a small portion of total condo sales. These lower price points are well below the GTA’s median condo price of $629,250, making them particularly attractive to budget-conscious buyers.

Much of this renewed activity is happening outside of Toronto proper. In Halton and Peel, buyers are finding better value per square foot, more space, and often newer buildings than in the downtown core. These regions are drawing first-time buyers, young professionals, and downsizers alike—many of whom had previously been priced out of the market entirely.

One of the biggest reasons behind this shift is the reduced presence of investors. In previous years, investor competition made it difficult for regular homebuyers to secure entry-level condos. Today, with many investors sitting on the sidelines due to high borrowing costs and rental uncertainty, end-user buyers are stepping in. As Wahi CEO Benjy Katchen explains, this has created a more accessible market for people looking to buy a home rather than a rental asset.

That said, affordable condos are not flying off the shelves. The average time to sell has increased slightly year-over-year. Condos in the $400K–$499K range now take about 38 days to sell, compared to 35 days in 2024. Those in the $300K–$399K bracket are staying on the market for an average of 43 days, up from 34 days last year. While slower, this pace offers buyers more room to consider their options and negotiate favorable deals.

Meanwhile, more expensive condo units are seeing a noticeable decline in demand. The steepest drop occurred in the $700,000 to $799,000 range, which experienced a 36% decrease in sales compared to last year. This suggests a broader trend toward affordability, as buyers become increasingly cautious about overextending in a higher-interest-rate environment.

If you’ve been waiting for a more affordable way into the GTA housing market, this may be your opportunity. The rise in sub-$500,000 condo sales is giving first-time buyers and downsizers a chance to own property without the pressure and competition of previous years. With more inventory available and fewer bidding wars, today’s market favors thoughtful, well-informed buyers.

Of course, purchasing in a shifting market requires strategy. At MariaHomes.ca, we specialize in helping buyers navigate the changing landscape, identify high-potential properties, and secure smart investments that align with long-term goals. Whether you're looking in Mississauga, Brampton, Milton, or beyond, our expertise can help you make confident and informed decisions.

Thinking about buying a condo in the GTA under $500,000?

Let’s talk. Contact Maria Ho at 416-858-9006 today for expert guidance and local insights that give you an edge in today’s market.