Even though terribly average homes in Toronto are hitting the market for $10 million and the average price for any home in the GTA sits around $1.2 million, prices for new condos in particular are finally dropping for the first time in 10 years.

A new report from the real estate market experts at Urbanation reveals that both activity and prices in this sect of the region's market are way down, with 35 per cent fewer new units sold in the last three months than during the same period last year, and prices down 1.3 per cent quarter-over-quarter and 2.2 per cent year-over-year.

This marks the first time since 2013 that prices in a calendar quarter have plummeted whatsoever compared to the same quarter of the year prior, which is yet another indication that the city's real estate market isn't nearly as hot as it used to be.

The firm also notes that when looking at both Q1 and Q2 together, this has been the slowest first six months of any year for new condo sales in a decade.

In 2023 thus far, sales figures for this type of home in Toronto have fallen 59 per cent from the first half of 2022, and 42 per cent from the 10-year average.

Prices for new units now sit at a still-very-pricey $1,411 per square foot, with buyers focusing on the cheaper pre-construction condos on the market, likely due to the prohibitively high mortgage rates and abominable cost of living in general that are impacting everyone in the country.

The company also notes "supply bottlenecks" that developers are facing as the government and public keep pushing for new builds to accommodate the overwhelming and growing demand that has kept prices so high.

"The number of starts continues to run well ahead of the capacity to deliver new units," the report reads, listing a total of 27,537 new condo units started in the last year, compared to just 17,117 completed.

Even though the flurry of construction is good for future housing demand, Urbanation says that "the GTA's 12-month running total for new condo sales has dropped to its lowest level since 2009," which "will soon begin to impact construction and eventually cause serious supply shortages in a few years as the population expands at a record pace."