Toronto’s housing market spent much of 2026 in a cautious mood. Sales were lower than a year earlier, prices eased and buyers had more choice than in the peak years of 2021 and 2022. Here is where the market stands and what to watch for the rest of the year and into 2027.
Key numbers
| Indicator (September 2026) | City of Toronto | Whole GTA |
|---|---|---|
| Home sales | 1,937 (down 5.4% y/y) | 5,040 (down 9% y/y) |
| Average selling price | about $1,034,000 | about $1,006,000 |
| Composite benchmark price change | n/a | down 4.7% y/y |
Source: Toronto Regional Real Estate Board (TRREB) Market Watch, September 2026.
What is driving the market
- Borrowing costs: the Bank of Canada held its policy rate at 2.25% through much of 2026, but rising bond yields pushed fixed mortgage rates higher in late summer, weighing on affordability.
- Condo supply: a large number of condo completions has increased choice for buyers and renters, putting pressure on condo prices and rents compared with their peaks.
- Detached and semi-detached homes: freehold homes in established neighbourhoods remain in demand because supply is limited.
- Population growth: slower immigration targets have reduced the pace of new demand compared with recent years.
Condos vs. freehold homes
Condo apartments have been the softest segment, especially smaller investor-oriented units. Townhouses and detached homes have held value better in many neighbourhoods. Buyers looking for a first home may find more negotiating room in the condo market than they have in years.
The rental market
New condo supply and slower population growth have eased average asking rents from their highs in many parts of Toronto. Tenants have more options, and some landlords offer incentives. Rent increases for most existing tenancies in Ontario are capped by the annual provincial guideline, although units first occupied after November 15, 2018 are exempt.
Outlook for the rest of 2026 and 2027
- Sales are likely to stay subdued unless mortgage rates fall meaningfully.
- Prices may stabilize in segments where listings decline.
- Long-term demand remains supported by Toronto’s economy, universities and role as Canada’s largest job market.
Tips for buyers and sellers
- Buyers: get a pre-approval with a rate hold, compare total ownership costs including the Toronto Municipal Land Transfer Tax, and negotiate conditions.
- Sellers: price realistically, invest in presentation and be ready for longer days on market.
- Investors: stress-test cash flow at higher rates and vacancy assumptions.
Related: GTA real estate market update, mortgage calculator guide and GTA infrastructure projects affecting property prices.
This page is general information, not financial or real estate advice.