Ontario Micro-Condos Face Steep Depreciation | Sivage Sivagumaran, CPA | https://sivagerealty.ca | How to Find the Best Real Estate Agent in Toronto for Your Needs?

Micro-condos in the GTA are facing notable depreciation, a trend that’s important for buyers, sellers, and investors to keep in mind. As of Mid-Q3 2026, the average home selling price in the GTA was $993,000—down about 3% from last year—highlighting a market that’s easing and presenting fresh opportunities for buyers ready to negotiate strategically. Condo apartments averaged $618,000 in the same period, with the smallest units—those under 500 sq-ft—seeing the sharpest decline. These micro-condos are proving especially challenging to sell, as more buyers are choosing larger options and end-user demand remains limited. In Early-Q3, condos sold below list price in approximately 98% of GTA neighbourhoods with at least five sales, giving buyers broader negotiating power than usual. Single-family homes experienced underbidding in roughly 92% of neighbourhoods as well, but condos were even more sensitive to shifts in investor demand, with many investor-oriented units sitting on the market longer. As a broker with a CPA background, I always prioritize financial clarity and negotiation strength—understanding these shifts is key to maximizing value, whether you’re moving up, investing, or entering the market for the first time.