Toronto’s housing market has taken a sharp turn, with inflation-adjusted home prices dropping about 10% over the past year—the steepest reset among major global cities. Benchmark prices have also eased, with the composite measure now roughly 5% lower year-over-year on a seasonally adjusted basis, bringing average values to around $931K. While central condo affordability may appear improved based on income alone, factoring in mortgage interest, maintenance, taxes, and a risk premium means that owning still remains significantly more expensive than renting.
For those navigating these shifts—whether buying, selling, or investing—the current market presents a narrow window of opportunity. Prices have softened, but if buyer demand rebounds before new supply catches up, conditions could tighten quickly. As someone who’s closely tracked Toronto’s real estate trends for years, I know that the city faces a major supply challenge: annual housing starts will need to rise by at least 50% over the next decade just to return to 2019 affordability levels. My approach is always to provide thoughtful, personalized guidance in this evolving landscape, ensuring you have the insights and strategies needed for success in any market condition.
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