Is It Time To ‘Buy The Dip’ On Investment Condos?
A recent CMHC report titled “Is Toronto’s condo market downturn a repeat of the 1990s?” points to a possible future rebound as new supply has essentially stopped. The argument is straightforward: With no new projects breaking ground today, the eventual shortage could drive another wave of appreciation tomorrow. That thesis is the foundation for many to ask and question whether or not it’s time to buy investment condos.
It is a question worth exploring. Toronto has experienced cycles where underbuilding eventually led to renewed price growth, and CMHC is correct to highlight that construction slowdowns can set up future scarcity. For many investors, the current environment feels like a classic ‘buy when there’s blood in the streets’ moment; prices have fallen from peaks, sentiment is negative, and conventional wisdom says to avoid the asset class entirely. But before assuming that contrarian instincts and long-term supply dynamics alone make condos a smart buy in 2025, it is worth looking at the mechanics that investors actually face today. When you do, the investment case breaks down quickly.
