Updated August 2026
Is now a good time to buy a home in Toronto? For financially prepared buyers planning to stay in their property for at least five to seven years, the answer may be yes. Prices remain below last year’s levels, buyers generally have more negotiating room than during Toronto’s hottest markets, and borrowing conditions have improved from their recent peak.
That does not mean every property is a good purchase—or that prices cannot decline further. Your income stability, savings, time horizon, preferred neighbourhood and property type matter more than trying to predict the exact bottom of the market.
Key takeaways
- GTA home sales increased in June 2026 while the average selling price remained below its June 2025 level.
- Toronto condos remain more affordable than houses and may provide buyers with greater choice, but each building requires careful financial and legal review.
- Buyers should not wait for lower interest rates without considering that lower rates could bring more competition into the market.
- A purchase makes more sense when you have stable income, adequate savings and a long ownership horizon.
- Closing costs in Toronto are substantial because buyers may pay both Ontario and municipal land transfer taxes.
- The right property at a sustainable price is more important than perfectly timing the market.
What is happening in the Toronto housing market?
The Toronto-area market showed signs of improving activity in June 2026, but conditions remained very different from the bidding-war environment experienced earlier in the decade.
The Toronto Regional Real Estate Board reported 6,770 GTA home sales in June 2026, an increase of 9.4% from June 2025. The average GTA selling price was $1,058,658, down 3.9% year over year. Homes spent an average of 29 days on the market, compared with 26 days one year earlier.
On a seasonally adjusted basis, sales increased from May while new listings declined. Both the average price and the MLS Home Price Index also rose slightly month over month. This suggests that the market was tightening through the spring, although one month does not establish a lasting recovery.
June 2026 market snapshot
| Market indicator | June 2026 | Annual change |
|---|---|---|
| GTA home sales | 6,770 | +9.4% |
| GTA average selling price | $1,058,658 | -3.9% |
| Average listing days on market | 29 days | +11.5% |
| Toronto detached average price | $1,648,440 | +0.3% |
| Toronto semi-detached average price | $1,264,782 | -1.1% |
| Toronto townhouse average price | $973,232 | +1.5% |
| Toronto condo apartment average price | $665,760 | -9.0% |
“Toronto” in the property-type figures refers to the 416 area. GTA-wide statistics include Toronto and surrounding 905 communities. Average prices can be affected by the mix of properties sold, so buyers should also review benchmark prices and recent comparable sales.
Source: TRREB June 2026 Market Watch.
Is Toronto currently a buyer’s market?
Toronto is not one uniform real-estate market. Conditions can vary by neighbourhood, price range, property type and even condominium building.
A well-priced family home in a popular school district may receive several offers. A small investor-oriented condo with high maintenance fees could remain available for weeks. GTA-wide labels such as “buyer’s market” cannot explain these differences.
Nevertheless, today’s buyers may have opportunities that were uncommon during the most competitive periods. Depending on the listing, these may include:
- Time to compare multiple properties
- The ability to include financing or inspection conditions
- Negotiating below the asking price
- Requesting repairs or credits
- Reviewing condominium documents before committing
- Walking away from an unsuitable property without fearing that every alternative will immediately sell
Buyers should evaluate the recent sales and active competition for the specific property segment they are targeting.
Are Toronto home prices likely to fall further?
They could, particularly in segments with abundant inventory or weak demand. However, a sustained increase in sales and decline in listings could eventually stabilize prices.
Factors that could place downward pressure on Toronto prices include:
- Affordability constraints
- Economic or employment weakness
- A large supply of resale condos
- Newly completed but unsold units
- Slower population growth
- Owners facing mortgage-renewal pressure
Factors that could support prices include:
- Lower borrowing costs
- Improving buyer confidence
- Reduced new construction
- Limited supplies of ground-oriented homes
- Renewed population and employment growth
- A decline in active listings
CMHC expects the Toronto condominium market to underperform in 2026 as numerous completions add supply. Its outlook also anticipates weakness in the GTA resale market before conditions improve later. Forecasts are scenarios rather than guarantees, however, and the result will differ across property types and neighbourhoods. Read the CMHC Housing Market Outlook.
Trying to identify the precise bottom is extremely difficult. Buyers with a long time horizon may be better served by negotiating carefully on a suitable home than by basing their entire decision on a short-term forecast.
Should buyers wait for lower mortgage rates?
The Bank of Canada held its policy interest rate at 2.25% on July 15, 2026. The policy rate influences variable-rate borrowing, but fixed mortgage rates are also affected by Government of Canada bond yields, lender funding costs, competition and borrower qualifications. See the Bank of Canada’s latest decision.
Waiting for mortgage rates to fall can reduce payments, but it carries two risks:
- Rates may not decline when expected.
- Lower rates may bring more buyers into the market, increasing competition and supporting prices.
Consider an illustrative $640,000 mortgage amortized over 25 years:
| Illustrative rate | Approximate monthly payment |
| 4.0% | $3,365 |
| 5.0% | $3,722 |
The difference is approximately $357 per month. These examples exclude property taxes, insurance, utilities, condominium fees and other ownership expenses. They are not current mortgage offers.
A buyer should compare the cost of purchasing now with the full cost and uncertainty of waiting—not interest rates alone. A mortgage professional can provide payment calculations based on current products and personal qualifications.
Is now a good time to buy a Toronto condo?
Toronto condos may offer some of the strongest negotiating opportunities, especially for buyers who want to enter the market at a lower price than a ground-oriented home.
In June 2026, the average Toronto condo apartment sold for $665,760, down 9% from a year earlier. Sales were up 14.3%, indicating that lower prices and greater selection may be bringing some purchasers back.
The Bank of Canada has also identified important challenges in Toronto’s condo sector. Reduced investor demand and weaker economics for new developments have contributed to a sharp decline in projects beginning construction. Read the Bank of Canada’s condo-market analysis.
A lower price does not automatically make a condo good value. Before purchasing, investigate:
- Monthly maintenance fees and what they cover
- The corporation’s reserve fund
- Planned major repairs
- Current or proposed special assessments
- Building insurance
- Lawsuits involving the corporation
- Owner-occupancy and rental patterns
- Unit layout and usable space
- Parking and locker ownership
- Restrictions on pets, renovations or leasing
- Comparable sales within the same building
Have a qualified real-estate lawyer review the status certificate and related condominium documents.
Is now a good time to buy a house in Toronto?
Detached and semi-detached homes remain considerably more expensive than condos. Their values can also be supported by scarce land, family demand and redevelopment potential.
A house may make sense if you need more space, value control over the property and can comfortably manage maintenance. Buyers should budget for expenses that condo owners may partly pay through monthly fees, including roofing, heating systems, landscaping, drainage and structural repairs.
Due diligence is especially important for older Toronto houses. Consider:
- A professional home inspection
- Knob-and-tube or aluminum wiring
- Old plumbing and sewer lines
- Basement moisture
- Foundation movement
- Unpermitted renovations
- Oil tanks
- Asbestos or other hazardous materials
- Shared driveways and encroachments
- Zoning and legal status of secondary suites
Do not waive an inspection simply because a property appears attractive or has been renovated.
Who may benefit from buying now?
Buying in the current Toronto market may suit someone who:
- Has stable employment and reliable income
- Can make the down payment without exhausting all savings
- Has a separate emergency and repair fund
- Can afford payments if expenses increase
- Plans to own for at least five to seven years
- Is buying primarily for housing rather than quick appreciation
- Has found a property suited to long-term needs
- Is prepared to negotiate based on evidence
A softer market can give a prepared buyer time to perform due diligence that may be difficult during periods of intense competition.
Who should consider waiting?
Waiting may be prudent if you:
- Expect your employment or income to change
- Would use nearly all your savings to close
- Carry high-interest consumer debt
- May leave Toronto within a few years
- Can afford the home only at the edge of your approval
- Are relying on rapid appreciation to justify the purchase
- Have not accounted for repairs, taxes or condo fees
- Feel pressured to buy before you are personally ready
Being approved for a mortgage does not necessarily mean the resulting payment will be comfortable.
What does it cost to buy a home in Toronto?
The purchase price and down payment are only the beginning. Toronto buyers should prepare for:
- Ontario land transfer tax
- Toronto municipal land transfer tax
- Legal fees and disbursements
- Title insurance
- Inspection and appraisal fees
- Property-tax and utility adjustments
- Moving costs
- Immediate repairs or furnishings
- Mortgage insurance when the down payment is below 20%
- Condo-document review when applicable
Example: Buying an $800,000 Toronto property
Before rebates, an $800,000 purchase would generate approximately:
- Ontario land transfer tax: $12,475
- Toronto municipal land transfer tax: $12,475
- Combined land transfer taxes: $24,950
An eligible first-time buyer could potentially receive rebates of up to $4,000 provincially and $4,475 municipally, reducing the combined amount to approximately $16,475.
Legal work, title insurance, an inspection, adjustments and moving expenses could add several thousand dollars. The exact total depends on the property and transaction. Verify eligibility and calculations with a lawyer. Toronto’s rates and estimator are available on the City of Toronto land transfer tax page.
Toronto homebuyer readiness checklist
Before making an offer, ask:
- Do I have stable income?
- Have I received a current mortgage pre-approval?
- Can I afford the payment under a higher-rate scenario?
- Will I retain an emergency fund after closing?
- Have I budgeted for both land transfer taxes?
- Do I understand the property’s monthly carrying costs?
- Am I likely to remain in the home for five to seven years?
- Have I reviewed comparable sales?
- Have I investigated the property and neighbourhood?
- Does this home meet my likely future needs?
- Am I comfortable owning it if prices decline temporarily?
If several answers are no, additional preparation may be more valuable than rushing into the market.
How to buy strategically in the current Toronto market
Establish a complete budget
Calculate the mortgage payment, property tax, utilities, insurance, maintenance and commuting costs. For condos, include maintenance fees and possible future increases.
Compare recent sales—not asking prices
A seller can choose any asking price. Recent sales of similar homes provide better evidence of market value.
Investigate listings that have been available longer
A stale listing does not necessarily mean a bad property. It can result from poor marketing or unrealistic pricing and may create an opportunity for a well-supported offer.
Protect yourself with appropriate conditions
Financing, inspection and legal-review conditions can reduce risk. Whether a particular condition is appropriate depends on the property and competitive situation.
Keep cash after closing
New owners frequently encounter expenses they did not anticipate. An emergency fund can keep a routine repair from becoming a financial crisis.
Final verdict: Is now a good time to buy a home in Toronto?
For a financially secure buyer with a long-term plan, 2026 may provide a useful window to purchase a Toronto home. Prices in several segments remain below last year’s levels, condo buyers have substantial choice, and many purchasers retain more negotiating leverage than they would in a rapidly rising market.
The risks are real. Toronto remains expensive, economic uncertainty persists, and some property values could decline further. Buyers should therefore focus on affordability, quality and time horizon—not fear of missing out or predictions of an immediate rebound.
If you are considering a purchase, Sam Kamra can help you compare Toronto neighbourhoods, assess recent sales and build a buying strategy around your budget and goals. Visit samkamra.ca to start a conversation.
Frequently asked questions
Is Toronto currently a buyer’s market?
Some Toronto segments favour buyers more than others. Condos with abundant competing inventory may offer meaningful negotiating room, while well-priced houses in desirable neighbourhoods can still attract multiple offers. Evaluate conditions at the neighbourhood, property-type and price-point levels rather than relying exclusively on a GTA-wide label.
Will Toronto home prices fall in 2026?
Further declines are possible, particularly in condo segments facing considerable supply. However, improving sales and declining listings could support prices. No one can reliably identify the exact bottom, so buyers should test their decision against long-term needs and the possibility of a temporary decline.
Is it better to buy a Toronto condo or house?
A condo generally offers a lower purchase price and less direct maintenance. A house may provide more space, control and land value but has a much higher entry cost and greater repair responsibility. The better choice depends on your budget, lifestyle and expected ownership period.
Should I wait for mortgage rates to decrease?
Waiting could produce a lower payment if rates decline, but lower rates may also increase competition and prices. Because the timing is uncertain, compare available properties and present-day affordability with realistic future scenarios instead of assuming rates will move in one direction.
How much money do I need to buy a home in Toronto?
You need the required down payment plus closing costs and an emergency reserve. Closing costs can be significant because Toronto buyers may pay both provincial and municipal land transfer taxes. The exact amount depends on the purchase price, mortgage structure and eligibility for first-time-buyer rebates.
What are the closing costs for a Toronto home?
Common costs include Ontario and Toronto land transfer taxes, legal fees, title insurance, inspection or appraisal charges, adjustments and moving expenses. Buyers making a down payment below 20% may also require mortgage default insurance.
How long should I plan to own a Toronto property?
A horizon of at least five to seven years can help offset transaction expenses and short-term price fluctuations. This is a guideline rather than a guarantee. Your future plans, financing and property type should shape the decision.
Is Toronto real estate still a good long-term investment?
Toronto property may perform well over a long period, but appreciation is not guaranteed. Financing costs, taxes, maintenance, rental income and opportunity costs all affect returns. Purchase decisions should remain sustainable even if prices grow slowly or temporarily decline.
This article provides general information and does not constitute financial, mortgage, legal, tax or investment advice. Market conditions and government programs can change. Consult appropriately qualified professionals before making a purchase.