Toronto Real Estate Market Report & Outlook for 2026 — Prices, Trends & What Buyers Should Expect
The Toronto real estate market in late 2025 and early 2026 continues to shift toward more buyer-friendly conditions, driven by moderating prices, higher inventory, and cautious demand. According to the Toronto Regional Real Estate Board (TRREB), the average selling price of a home in Toronto was $951,700 in November 2025 — down 5.8% year-over-year.
Average Home Prices in Toronto — November 2025
- All home types: $951,700 (▼ 5.8% YoY)
- Single-family homes: $1,162,500 (▼ 5.8% YoY)
- Townhomes / multiplex properties: $696,300 (▼ 7.7% YoY)
- Condos: $558,500 (▼ 7.7% YoY)
- Average monthly rent: $2,521
As of January 6, 2026, the lowest 5-year fixed mortgage rate available in Toronto is approximately 3.89%, helping support affordability even as buyers remain cautious.
Toronto Housing Market Summary — November 2025
Toronto Regional Real Estate Board (TRREB) reported the average resale home price at $951,700 — a 5.8% annual decline.
The sales-to-new-listings ratio (SNLR) is 45%, indicating a balanced market — though many segments are leaning toward buyer-favoured conditions.
Key Toronto Market Statistics — November Snapshot
- Home sales: 5,010 (▼ 15.8% YoY)
- New listings: 11,134 (▼ 4% YoY)
- Active listings: 24,549 (▲ 16.8% YoY)
- MLS HPI benchmark: ▼ 5.8% YoY
- Average sale price: $1,039,458 (▼ 6.4% YoY)
Month-over-month, pricing remained relatively stable — suggesting price declines may be slowing.
Sales Decline Across All Property Types
Demand weakened across every major housing segment:
- Condo sales: ▼ 21.7% YoY
- Townhomes: ▼ 15.5% YoY
- Detached homes: ▼ 14.8% YoY
- Semi-detached homes: ▼ 5.5% YoY
This trend reflects buyer hesitation driven by economic uncertainty rather than property-specific factors.
Inventory Growth Is Reshaping Buyer Power
With active listings up nearly 17%, buyers now have more leverage, more choice, and fewer bidding wars than seen in recent years.
Condo inventory is especially elevated, moving further into buyer’s-market territory. Sellers are beginning to adjust price expectations, helping stabilize values month-to-month.
Unless demand strengthens, buyer-favourable conditions are expected to continue into early 2026.
Why Some Buyers Are Still Waiting
Even with improved affordability on paper, many households remain cautious.
TRREB highlights employment confidence and broader economic stability as key variables impacting buyer sentiment. As confidence improves, demand may gradually return — especially among first-time and move-up buyers.
Toronto Rental Market Summary — November 2025
- Average rent across all units: $2,521
- Average 1-bedroom rent: $2,222 (▼ 6.4% YoY)
- Average 2-bedroom rent: $2,828 (▼ 8.5% YoY)
Softening rents suggest greater rental supply and easing demand pressures.
Renting vs. Owning in Toronto — Cost Snapshot
At the 3.89% 5-year fixed rate, each $100,000 in mortgage balance costs approximately $520.07/month.
At a 3.45% adjustable rate, the cost is $497.95/month per $100,000 borrowed.
A 0.25% rate change shifts monthly mortgage payments by about $13.27 per $100,000 borrowed.
Figures assume insured mortgages with under 20% down and a 25-year amortization.
Toronto Real Estate Market Outlook for 2026
Looking ahead, the Toronto real estate market in 2026 is expected to remain balanced to slightly buyer-leaning, with trends shaped by:
✔ Stable to slowly declining interest rates
✔ Improving but cautious consumer confidence
✔ Continued price moderation in key segments
✔ Strong long-term demand fundamentals
This environment presents strategic opportunities for buyers and investors — especially those seeking value in condos and townhomes.
Thinking About Buying or Selling in Toronto in 2026?
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