The Current Canada’s Condo Crash
Sep 17, 2025
Mike Moffitt, Director of the University of Ottawa's Missing Middle Initiative, dives into the troubling dynamics of Canada’s condo market. He examines the sharp decline in condo prices and the staggering number of unsold or unbuilt units, leaving first-time buyers and speculators in a tough spot. Moffitt discusses the pitfalls of pre-construction contracts and the challenges builders face. He warns of a market freeze that could lead to reduced building and future price spikes, reflecting deeper issues in housing policy.
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Rapid Condo Boom Created Fragile Market
- Condo prices rose meteoricly in big cities, creating rapid sales and investor frenzy.
- That boom set the stage for a sharp downturn when conditions changed.
Major Price Declines In Toronto And Vancouver
- Between 2022 and 2025 condo benchmark prices fell sharply in Toronto and Vancouver.
- The decline translated into losses of hundreds of thousands of dollars for some buyers.
Buyer Sued After Flip Strategy Collapsed
- Nazar bought a pre-construction condo with a 10% deposit planning to flip it before closing.
- Rising interest rates erased buyers and left him sued for nearly a million dollars by the developer.