Explore our Toronto real estate market updates by year and season below. Each section expands to summarize market conditions for that period.
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Most people would agree that the Toronto real estate market throughout 2025 was uncertain. What may be less noticeable – to those not actively participating – is that it was also surprisingly stable. Many of the trends we were monitoring continued as we thought they would, and many of the insights we have shared in past years were reinforced.
In broad strokes: sales activity was down, inventory levels remained high, and buyers were understandably cautious. Last year we mentioned a prolonged period of price discovery. This is a natural, and necessary phase of a more general market reset and aids in the stabilizing of a new floor for property values in a market that was previously propped up on some not-so-stable speculative footings.
While this discovery phase saw a broad decline in value across the GTA, some segments were impacted more than others. The cracks in the condo market, which we flagged several years ago, broke open, and we now have a glut of unsold (and largely unliveable) micro-condos languishing on the market. From an optics perspective it’s easy to assume that demand for all condos is down, but, in reality, because there are so few liveable and thoughtfully designed suites available in the city, those that are, still sell. It has always been the case in Toronto that quality product will move. In markets like this, what you’ve purchased, where it is, and how you’ve maintained/upgraded it over the years determines whether you’ll sell for a price that leads the market, or whether you’ll have to concede and adjust down.
The Bank of Canada has indicated clearly that rates are likely as low as they’re going to get for some time. We expect them to hold steady for the rest of 2026. This bit of financial certainty may be enough to pique buyer interest, and could help to draw down some of the unsold inventory. Ideally, these listings can be absorbed by first-time buyers so that new supply isn’t added back into the market at the same time. With Ontario’s flat population growth in 2025, 2026 certainly won’t be able to rely on newcomers or investors to contribute much to any recovery.
For 2026, our guidance is unchanged: shift toward well-planned purpose built rentals; target strong “safe-harbour” areas within the city; avoid small or poorly designed condos as investment vehicles.
It is important to remember what sustainable growth in the real estate market looked like. For many years, growth was tracking around 2-4% annually. We expect a return to this, for some time. We do not anticipate the kind of unsustainable growth that defined the COVID-era run-up in property values. It is also logical to assume that until we see stability in the United States, and more broadly around the world, it will be difficult for anyone to focus on much else with the kind of enthusiasm and emotionality we need in order to see meaningful value appreciation.
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In 2025, Toronto’s real estate market continued its transition away from the volatility and speculation of the early 2020s toward a more balanced, fundamentals-driven environment. Activity across both ownership and rental markets was shaped by elevated inventory levels, moderated population growth, and cautious buyer and tenant sentiment.
On the ownership side, new listings continued to outpace sales for much of the year, reinforcing buyer leverage and limiting price growth. The condominium sector experienced the most pronounced adjustment, with a significant increase in investor-owned units returning to the market as short-term appreciation strategies lost viability. Absorption slowed, pricing expectations reset, and holding periods lengthened. Low-rise housing values remained comparatively stable, though transaction activity was selective and increasingly dependent on asset quality and location rather than market momentum.
Rental market conditions softened further in 2025. A large volume of condominium projects launched during the 2020–2021 development cycle reached completion, adding substantial supply just as demand growth moderated. Slower immigration inflows and reduced short-term population growth expanded tenant choice, particularly in high-density downtown areas. Average rents eased, days on market increased, and leasing outcomes became more sensitive to pricing accuracy and unit differentiation.
Across both markets, negotiating power shifted away from sellers and landlords toward buyers and tenants. Overpricing was increasingly penalized, and performance depended less on sentiment and more on structural fundamentals such as design, functionality, location, and long-term usability.
Overall, 2025 marked a year of rebalancing rather than recovery. Growth expectations moderated, speculative behaviour receded, and Toronto’s real estate market moved closer to a sustainable equilibrium defined by disciplined pricing, selective demand, and increased emphasis on enduring value.
Entering 2025, Toronto’s real estate market remained shaped by cautious sentiment, elevated inventory levels, and a continued recalibration following the volatility of the early 2020s. Throughout 2024, new listings consistently outpaced sales, reinforcing buyer leverage and placing sustained pressure on pricing — particularly within the condominium sector.
The condo market showed clear signs of structural weakness. A large share of investor-owned units, combined with rising carrying costs and softer resale and rental conditions, led to a significant increase in listings and prolonged absorption. Short-term appreciation strategies that had dominated the previous decade largely disappeared, and holding periods lengthened across both condo and single-family segments.
Low-rise housing values stabilized rather than declined sharply, reflecting a broader shift away from speculative activity toward long-term ownership. Market performance increasingly favoured properties with objective, enduring value characteristics — including unique design, efficient layouts, and strong locations — while standardized, undifferentiated inventory struggled to attract buyer conviction.
Rental conditions also softened entering 2025. Lower borrowing costs did not translate into a resale recovery, instead encouraging unsold units to re-enter the rental pool. With population growth moderating and new supply concentrated in the downtown core, rent growth slowed and tenant choice expanded.
Overall, 2025 reflected a market still searching for equilibrium. Buyer caution persisted, inventory remained elevated, and growth expectations moderated. Performance increasingly depended on asset quality and structural fundamentals rather than momentum, marking a continued transition toward a more disciplined and selective market environment.
Throughout 2023, Toronto’s real estate market underwent a broad recalibration following an aggressive interest rate tightening cycle by the Bank of Canada. Rapid rate increases significantly reduced purchasing power, cooled transaction activity, and forced both buyers and sellers to adjust expectations after several years of rapid price appreciation.
Market activity slowed meaningfully, with transaction volumes down sharply year over year. New listings remained constrained, limiting the extent of distressed selling and contributing to a more balanced market environment. Price corrections varied by property type, with the most pronounced adjustments occurring in detached and low-rise housing, while condos and condo-townhomes experienced more modest declines.
By mid-to-late 2023, pricing and activity began to stabilize as the majority of the correction worked through the system. Sellers increasingly chose to delay sales or transition properties into the rental market, supported by elevated lease rates driven by housing supply constraints and affordability pressures among would-be buyers.
The rental market remained tight, with strong demand sustaining high average rents, particularly in well-located and higher-density properties. At the same time, rising operating costs, elevated consumer debt levels, and extended Landlord and Tenant Board timelines continued to influence landlord risk management and tenancy outcomes.
Overall, 2023 reflected a year of adjustment rather than collapse — characterized by moderated pricing, reduced leverage tolerance, and renewed emphasis on property fundamentals as the market adapted to a higher interest rate environment.
In 2022, Toronto’s real estate market experienced a year of extreme pricing pressure followed by the earliest signs of transition. Strong demand, limited housing supply, low interest rates, and pandemic-driven lifestyle shifts pushed home prices to record levels across most property types.
Price growth was particularly pronounced in low-rise housing, while condos also experienced significant appreciation. Market conditions reflected an overheated environment, with sales-to-new-listings ratios indicating an aggressive seller’s market for much of the year. Structural supply shortages and immigration-driven demand continued to underpin competition.
As the year progressed, early indicators of cooling emerged. Price acceleration slowed, housing starts and building permits declined, and the Bank of Canada signaled the start of a sustained interest rate tightening cycle. These developments marked a turning point in market sentiment after several years of rapid appreciation.
The rental market continued its recovery following the 2020–2021 correction. Leasing activity improved alongside the return to in-person work and education, with stronger performance in larger units and single-family rentals. Smaller condos and basement apartments lagged due to shifting preferences toward space and flexibility.
Overall, 2022 represented a peak-and-pivot year — characterized by record pricing, heightened competition, and the first structural signals that market conditions were beginning to normalize under changing economic and policy dynamics.
By early 2021, Toronto’s real estate market had entered a period of sharp divergence following the initial COVID-19 shock. Market activity rebounded quickly after the spring 2020 pause, but performance varied significantly by property type and location.
Low-rise and suburban housing experienced intense demand, driven by low interest rates, limited inventory, and shifting buyer preferences toward space, privacy, and flexibility. Detached, semi-detached, and townhouse properties saw aggressive competition and rapid price appreciation, with bidding activity remaining strong through spring and summer.
In contrast, the downtown condo market continued to face headwinds. Elevated vacancy levels, declining lease rates, and increased inventory pressured investor-owned units, particularly smaller and conventional condo formats. While absorption began to improve in early 2021, pricing and rental conditions remained weaker than pre-pandemic levels.
Operational challenges also shaped the market environment. Limited Landlord and Tenant Board activity and temporary eviction restrictions introduced complexity for landlords managing vacancies, sales, or tenant transitions. Overall, March 2021 reflected a market defined by uneven recovery, heightened competition in ground-oriented housing, and ongoing adjustment within the condo and rental segments.
In 2020, the GTA real estate market experienced a sharp disruption due to the onset of the COVID-19 pandemic. Early in the year, price growth across the region remained strong, continuing momentum from 2019. However, market activity slowed abruptly as uncertainty around public health measures, employment stability, and economic conditions took hold.
Transaction volume and leasing activity paused as buyers, sellers, and tenants adopted a cautious, wait-and-see approach. While immediate price declines were limited in the early stages, sentiment shifted quickly, with concerns emerging around unemployment, household affordability, and the potential for increased inventory.
The rental market was particularly affected, with reduced leasing activity, resistance to rent increases, and early signs of softening as showings slowed and vacancies became more difficult to fill. Expectations during the year centered on temporary price pressure and elevated vacancy risk until economic conditions stabilized.
Overall, 2020 marked a period of market interruption rather than collapse, introducing volatility and uncertainty that reshaped short-term decision-making and set the stage for structural shifts in the years that followed.
In 2019, Toronto’s real estate market moved from early-year uncertainty into a more stable and active summer and fall period. Initial hesitation from buyers and sellers was driven by global economic concerns, volatile equity markets, and negative media coverage from other Canadian markets. As these pressures eased, activity gradually returned.
By mid-summer, market momentum improved:
Sales rose significantly year over year
Average prices showed modest growth
Demand began to outpace new inventory
Entering fall 2019, projections pointed to tightening conditions, with buyers seeking value opportunities and sellers repositioning underperforming assets. Performance varied by property type, with condos and ground-oriented housing showing resilience, while detached homes faced price pressure.
Overall, 2019 closed as a year of stabilization rather than acceleration, setting the foundation for more constrained supply conditions in subsequent years.
