Lower cost condos bringing back first-time home buyer

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Lion’s share of under $500K condos can be found in Halton and Peel regions

Much ink has been spilled about the Greater Toronto Area’s soft condo sector, but that doesn’t tell the entire story.

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According to an analysis by Wahi, sales of GTA condos — which include townhouses with maintenance fees — in the $400,000 and $499,999 price range increased by 20 per cent year-over-year in the first quarter of 2025, while those priced between $300,000 and $399,999 surged by 55 per cent (from 62 to 96 in transactions).

The one caveat, however, is that this segment of the market only comprises 12 per cent of total condo sales.

Regardless, Wahi believes these statistics bear significance for arguably the most challenged cohort of buyers in the GTA. “Some homebuyers are clearly taking advantage of cooler conditions in the GTA’s condo market to purchase units at a lower price than they could have even a year ago,” says Wahi CEO Benjy Katchen.

Further, with investors mostly absent from the market today, “These are a lot of first-time buyers,” says Katchen, adding that, “about 80 per cent are buying as a co-buyer, as in they’re buying with their partner.”

And although Katchen says some of those sales can be found in Toronto, which he surmises are mostly, if not all, studio units — the lion’s share are in Peel and Halton Regions — “but in the further reaches of those two regions,” he clarified.

Wahi further notes that condos in the $400,000-$499,000 range took an average of 38 days to sell up from 35 days last year, while units in the $300,000-$399,000 bracket spent an average of 43 days on the market, compared to 34 days in the first quarter of 2024.

Dil Banga, a broker with RE/MAX Excellence, has developed a niche helping entry-level buyers find these bargain units, particularly in Brampton.

This subset of his clientele is predominantly the young couple trying to gain a foothold in the housing market so they can build equity and climb the housing ladder as their families grow.

And while the units are typically decades old, Banga says they’re fortuitously located in Brampton, where a dedicated LRT track is being built along Highway 10 from Shopper’s World in Brampton to Lakeshore Road in Mississauga’s Port Credit district.

Banga says these units are ideal for first-time buyers because they will, despite their age, appreciate nicely as the LRT nears completion.

“The key isn’t just finding these condos, it’s finding the right ones that help entry-level buyers build enough wealth to keep climbing the ladder,” Banga said. “Many of the sellers are upsizing to their second home. It’s as if the torch is being passed from one entry-level owner to another.”

Investors remain active in Brampton, Banga says, including, but not limited to, recent immigrants co-purchasing investment properties, and not exclusively for sub-$500,000 units.

“I have one investor client who only purchases these low-priced units now, provided they’re located around strong fundamentals like transit,,” Banga said.

“But right now, it’s end users who have come out of the woodwork.”