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The market isn’t crashing — the truth is, it already did.

But it’s not booming either.

Toronto real estate is in a holding pattern, much like other assets right now.

The real question is: what’s driving it, and where does it go from here?

For the right buyer, this could unveil the right opportunity.

Now, let’s dive in.

Toronto’s housing market isn’t behaving the way we’re used to.

Sales activity is starting to climb — up about 8% from the previous month — but the surge isn’t strong.

Prices are soft overall, even though the average price ticked up slightly last month.

That jump wasn’t driven by real value increases — it was more a shift in the types of homes selling.

With fewer condos trading hands, the average is being skewed higher by detached and semi-detached sales.

The more accurate House Price Index tells the real story — prices are still down more than 22% from the peak of February 2022.

Toronto now has more than 30,000 active listings.

That’s the highest number in decades — and 42% more than the same time last year.

A surge like this in inventory puts downward pressure on prices.

Many homes are sitting on the market longer.

Buyers have more options.

And sellers are realizing they need to price realistically to stand out.

There’s a backlog of sellers who sat out the last two years.

Now that rates appear to be peaking — and with talks of future rate cuts — more of them are jumping in.

At the same time, we’re seeing:

• A wave of vacant homes going up for sale — over 14,000 last month alone
• Landlords cashing out as rising costs outpace rental income
• More court-ordered sales from households in financial stress

It’s not panic selling — but it’s motivated selling.

And that matters if you’re a buyer with your financing ready.

Single-family home construction is down — which could help balance supply in the long term.

But in the condo market, the story is different.

Thousands of new units are completing this year, but few new projects are breaking ground.

Developers are holding off because buyer demand isn’t there right now.

This pause could lead to a condo shortage around 2030 — setting up the potential for a long-term rebound.

But in the short term, that means more opportunity for First-Time Homebuyers — especially if you’re considering a starter condo.

With prices down and some rate relief on the horizon, affordability is improving — just a little.

It’s not back to pre-2022 levels, but many first-time buyers are finding the math a bit easier.

If you’ve been priced out before, now might be the time to revisit your budget and run the numbers.

And remember — with more listings and fewer bidding wars, you’ve got real negotiating power right now.

The Toronto market isn’t in freefall — but it’s not recovering fast either.

We’re in what some call a “grind-it-out” phase.

Prices may stay flat for a while.

Sales will rise slowly.

Confidence will rebuild gradually.

And through it all, the buyers who come prepared will find value — especially in properties that are sitting longer than they should.

We may not see the full rebound until 2026, depending on how macro forces like tariffs, inflation, and rates play out.

More selection.

More leverage.

Less pressure.

If you’ve been waiting for the right time to buy — it might already be here.

Is it the right time for you to buy?

Every persons situation is unique, and the advice should be tailored to your situation. Best bet is for us to jump on a call and discuss your situation in detail, so I can provide you proper feedback.