A Market Catching Its Breath
Toronto’s housing market is still in reset mode. After the highs of 2021–2022, prices remain well below peak levels, and the recovery is moving more slowly than many expected. That said, August offered signs of life: more buyers stepped back in to take advantage of improved value, while sellers continued to add supply, creating a more balanced playing field.
Houses: Back in the Game
Freehold activity picked up in August, with sales up 8% year-over-year. Prices, however, remain under pressure; the average at $1,224,729 is still 7% lower than last year and 27% below the February 2022 peak.
Buyers have more choice than they’ve had in years, with active listings up 35%. That’s giving them leverage to negotiate, compare, and move deliberately. Sellers, meanwhile, are learning that pricing precisely and presenting well are non-negotiables in today’s market.
Condos: Stress Below the Surface
The condo market tells a softer story. Sales slipped 2% year-over-year while listings jumped 18%, pushing the average price down 4% to $664,841. Beneath those averages lies a more concerning trend: distressed sales.
In some buildings, units are selling at steep discounts compared to identical properties sold last year, resetting expectations across entire towers. A handful of fire sales don’t yet define the whole market, but if this pattern spreads, values could come under sharper pressure.
Adding to the challenge: an oversupply of small, investor-driven condos built in recent years. With investors retreating, these properties are struggling to hold value, leaving end-users with more negotiating power than ever.
Why This Cycle Feels Different
In past slowdowns, interest rate cuts often revived demand quickly. This time, rate relief has been modest, the economy is sluggish, and buyers are cautious. With inventory rising, they have little reason to rush.
This measured pace is creating something Toronto hasn’t seen in a while: balance. Buyers can shop carefully, and sellers who meet the market where it is can still achieve solid results.
What This Means for You
For Buyers: Patience pays. With supply at its highest in years and fewer bidding wars, there’s room to negotiate and secure the right property without pressure. Knowing your budget and being ready to act when the right home appears is the winning strategy.
For Sellers: Realism wins. Today’s buyers are savvy and have options. Listings that are overpriced or underprepared linger, while homes priced with precision and showcased properly are moving.
The Bottom Line: Quiet Progress
Toronto’s real estate market isn’t roaring ahead, but it’s no longer stalled. Instead, it’s settling into a new rhythm of balance: more options for buyers, cautious but steady activity for sellers, and prices stabilizing month-to-month even as they sit well below peak levels.
For anyone planning a move this fall, strategy and preparation will make all the difference. Thinking about a move? It might be more within reach than you think. Let’s talk and explore what’s possible, on your timeline, and on your terms.
