Welcome back to Pick Five! This week, we are shifting our focus from freehold homes to resale condos, where prices have dropped significantly, creating opportunities that many buyers thought were gone for good.

For years, it seemed impossible to find a quality one-bedroom condo under $500,000 in Toronto. Now, those listings are returning, and buyers are facing a new question: Are these great deals, or is there still room for prices to fall?

In this analysis, we’ll explore five resale condos under $500K, breaking down their locations, layouts, and potential as investments or homes.

Understanding the Market Shift

The Toronto condo market has faced significant headwinds, with resale values softening and pre-construction sales dropping by as much as 80-90%. The divergence between freehold and condo demand is becoming increasingly clear.

Key Trends:

• Resale vs. Pre-Construction – Pre-construction units are struggling, while resale condos remain more competitive.
• New Airbnb Regulations – Short-term rental restrictions are reshaping investor demand.
• A Buyer’s Market? – The condo absorption rate was just 24% in September 2024, signaling continued price weakness.
• Price Corrections – Units that once sold for over $600K are now being listed under $500K.

For buyers who were previously priced out of the market, this could be an opportunity to enter at a more reasonable level.

Property Rundown: Five Toronto Condos Under $500K

These five condos, spread across different neighborhoods, highlight the opportunities and challenges of the current market.

1. Liberty Village Townhouse

• Type & Price: Lower-level stacked townhouse, listed at $489,000
• Location: Western Battery Road (Liberty Village)
• Size: 480 sq. ft.
• Pros: Extremely low maintenance fees, outdoor space, strong rental potential.
• Cons: Lower-level unit with limited natural light, no parking.

For buyers seeking low monthly costs and potential for Airbnb, this could be a strong option.

2. Yorkville Offshoot One-Bedroom

• Type & Price: High-rise condo, listed at $499,000
• Location: 45 Charles St. E.
• Size: 516 sq. ft.
• Pros: 23rd-floor unit in a prime area, previously sold for $659K.
• Cons: No interior photos (tenant-occupied), condition unknown.

After sitting on the market for 80+ days, this unit raises questions, but it is priced significantly below past sales.

3. King East / St. Lawrence Market One-Bedroom

• Type & Price: Condo unit, listed at $499,000
• Location: 460 Adelaide St. E.
• Size: 536 sq. ft.
• Pros: Functional layout, strong location, significant price drop from previous listing at $603K.
• Cons: Situated on a busy street, lacks the premium of a King Street address.

This listing demonstrates how much prices have corrected in some areas.

4. King West Junior One-Bedroom

• Type & Price: High-rise condo, listed at $499,000
• Location: 458 Richmond St. W.
• Size: 511 sq. ft.
• Pros: Brand-new unit, strong layout, lower price than similar pre-construction offerings.
• Cons: Second-floor location with limited views, partially enclosed bedroom.

This building once had pre-construction sales at $1,200-$1,400 per square foot, but resale values have dropped to under $1,000 per square foot.

5. East Side Condo-Townhouse

• Type & Price: Two-story condo-townhouse, listed at $499,900
• Location: 485 Logan Ave.
• Size: 508 sq. ft.
• Pros: Two-story layout, new construction, low maintenance fees.
• Cons: Basement-level bedroom, awkward living room layout.

This is a good option for buyers looking outside the downtown core, though the design may not appeal to everyone.

Key Takeaways: What These Listings Reveal

• The $500K Market Has Returned – Condos that were once selling for well over this threshold are now back in a more affordable range.
• Resale Offers Better Value Than Pre-Construction – Many pre-construction buyers paid significantly more than today’s resale prices.
• Investment Potential Exists – Prices have fallen 20-30% from peak levels, creating opportunities for those who believe in long-term appreciation.
• Location Remains Crucial – Some areas, like Liberty Village and King West, have seen larger price swings than others.

Final Thoughts: Is Now the Time to Buy?

For buyers who have been waiting for a more affordable entry point into the market, this is a moment worth considering.

• For end-users, these prices provide an opportunity to buy without competing in bidding wars.
• For investors, there may be strong upside potential if the market rebounds.
• For those waiting for further declines, the market remains uncertain, but the current data suggests prices have already adjusted significantly.

What are your thoughts? Are these prices attractive enough to consider buying?

Leave your comments below and stay tuned for next week’s analysis.