Trapped in a Tower? Why Condo Owners Are Struggling to Break Free in 2025
- Seventy Seven Park
- Jul 14
- 3 min read
The Canadian real estate market is slowly showing signs of life again. Detached homes in Toronto, Vancouver, and other major markets are stabilizing. But one segment is still feeling the pressure: condo owners.
The condo market slowdown 2025Â is creating real challenges for those who hoped to sell their units and upgrade to more space. With an oversupply of units and reduced buyer demand, many owners are stuck making difficult financial decisions.
What the Condo Market Slowdown 2025 Means for Your Equity
Over the past three years, condo sales have dropped significantly. In the Greater Toronto Area, sales are down more than 75 percent since 2022. Vancouver is close behind with a 37 percent drop.
At the same time, completions are near record highs. Inventory is piling up. Investor demand has cooled. And many first-time buyers are choosing to wait out the uncertainty.
As a result, values are slipping. For many condo owners, that means less equity to work with when trying to buy a larger home.
Why Move-Up Buyers Are Feeling the Pressure
Most condo owners never intended to stay in their units forever. For many, the plan was to ride the appreciation wave, then sell and move up.
That plan has become far more complicated.
Today, the market favours buyers with leverage. If you are selling a condo, your success depends on timing, motivation, and price flexibility. Owners who are anchored to past valuations may struggle to attract serious offers.
Some sellers are accepting lower prices to exit quickly. Others are hitting pause, renting out their units, or waiting in hopes of a future rebound.
Three Strategies for Navigating Today’s Market
If your next move feels blocked by current conditions, here are three options to consider:
1. Rent it out
If you qualify for a mortgage on your next home and can cover the carrying costs, renting your condo could allow you to hold the asset while starting your move-up journey.
2. Tap into remaining equity
Even with price declines, many owners still have some equity. A refinance or home equity line of credit (HELOC) may be a smart way to access funds for your next step.
3. Wait with intention
Holding off can be a strategic move, but only if it is backed by a clear financial plan. Use this time to review your budget, understand your borrowing power, and explore market trends.
When Will the Condo Market Recover?
There is no clear answer. Economic headwinds like high interest rates, global supply chain disruptions, and persistent inflation are all affecting buyer behaviour.
The condo market may take longer to rebound than other segments. That is why it is essential to understand your position clearly and explore smart alternatives to stay on track with your goals.
Need a second opinion before listing your condo?
We help clients across Ontario navigate complex market conditions with tailored strategies and real numbers. If you are unsure what your condo is worth or how to move forward, let’s talk.
Book a free equity and financing consultation with our team today.
Seventy Seven Park Mortgages
📞 (416) 350-8448
Brokerage Licence Number #13004
Eduardo Pontes, Managing Director
Principal Mortgage Broker Level 2 & Real Estate Agent
416.455.3800
Mortgage Broker #M09002730
Marianne Radman, Operations Director
Mortgage Broker Level 2 & Real Estate Agent
647.984.5989
Mortgage Broker #M16001386
Dominic Mascoll, Mortgage Agent
Mortgage Agent Level 2 #M08006540
416.525.2918