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In Toronto, we’re seeing more cases where resale homes—especially those bought at the market’s peak—are now selling for less than their original purchase price. This shift is prompting many owners to reassess their next steps. One of the most practical ways forward is to ask: is selling right now truly necessary? Sometimes, even if a sale means accepting a lower price, having built up enough equity over time allows owners to repay their mortgage and move forward without hardship. In my experience working with both residential and commercial clients, I’ve noticed some Toronto freehold owners are choosing to renovate and stay put rather than face a potential sale loss and another round of land transfer tax. Buyers today are looking at current values—not what was paid in the past—so as a real estate advisor, I emphasize the importance of realistic pricing and understanding throughout the process. Strategic, informed decisions are key in this evolving market.

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Toronto’s average home price has edged just below the $1 million mark, currently sitting at approximately $993K—about 3% lower than this time last year. This shift has provided a welcome boost to affordability for many buyers. However, we’re also seeing a tighter market with new listings down by roughly 14% year-over-year, leaving about 12,100 homes available and buyers facing fewer options. Over 5,000 homes traded hands during this period, a slight 2% decrease in sales, yet the reduced inventory could heighten competition and potentially stabilize prices. Flat mortgage rates and encouraging economic signals have helped support buyer confidence, though ongoing trade concerns and the prospect of future inflation and borrowing costs are tempering some households’ plans. As always, when inventory gets even tighter and prices begin to climb, many buyers may move quickly, while improved conditions for sellers could encourage more listings. Drawing on my experience in both residential and commercial markets, I continue to monitor these trends closely to provide clients with strategies that maximize their opportunities in this evolving landscape.

Toronto area home prices have recently dipped below the $1 million mark, with the average sale price now around $993,000—about 3% lower than this time last year. This shift is improving affordability for many buyers, yet the picture is more nuanced: new listings have dropped by roughly 14%, leaving about 12,100 properties on the market and giving buyers fewer options to choose from. Sales also edged down by about 2%, totaling just over 5,000 transactions in the current period.

As someone who closely tracks these trends, I’ve noticed that flat mortgage conditions and encouraging economic signals are helping to keep affordability within reach. However, concerns about trade, inflation, and potential changes to borrowing costs are still weighing on some households’ decisions. If inventory continues to tighten and prices begin to rise, we could see buyers moving more quickly to secure homes, while improved conditions for sellers may encourage more listings to come forward. Navigating these shifts requires a strategic approach—one I’m dedicated to providing for every client looking to make confident, informed moves in our market.

As someone deeply immersed in Toronto’s dynamic real estate landscape, I pay close attention to the forces shaping housing affordability. Recent research from Canada’s central bank highlights an important truth: while lower interest rates can quickly boost homebuying activity, supply takes much longer to catch up. For example, after a rate cut, home resales tend to rise within months, and the full impact is seen 18 to 24 months later. Housing starts, however, usually don’t ramp up until two years down the line.

Strong labour markets and easier lending often make buyers feel more confident, accelerating the pace. Yet for builders, even when conditions improve, the realities of planning, permits, and project viability—especially for multi-unit developments—mean new supply takes time to materialize. Ultimately, rate cuts do help bring new supply, but because demand always leads, monetary policy alone isn’t a complete solution for affordability challenges.

Navigating these complexities for my clients is where experience and strategic advice matter most. Understanding both the timing and impact of these trends helps us make informed decisions and seize opportunities tailored to your goals.

Taxes and government charges have long been a significant part of a new home's price here in Ontario—about 36%, in fact, which means more than a third of what buyers pay goes beyond just construction costs. Development charges, in particular, have been a heavy burden, often exceeding $100K per single-family home in many communities, with total levies sometimes reaching $200K. Recently, a joint initiative between federal and provincial governments gave municipalities access to funding if they reduced residential development charges by 30%-50% (or more) and kept those reductions in place for at least three years. This, combined with the HST cut, had a striking impact: Ontario saw 8,400 new home sales in just the first three months after these changes, compared to 3,600 during the same season in previous years. As someone who closely follows policy shifts and their impact on our housing market, I believe that making these HST rebates and lower development charges permanent could provide much-needed certainty for buyers, builders, and local governments—paving the way for improved affordability and a stronger housing supply for our communities.