08/26/2026
Toronto Edges Toward a Balanced Market
Toronto’s real estate landscape is showing signs of moving toward a more balanced market. In early Q3, sales dipped about 1% year-over-year to around 6,000 transactions, while new listings dropped by roughly 18% to just over 14,500. This tightening gap between supply and demand is something I’ve watched closely over my 37 years in the Toronto market. When we see sales increase on a seasonally adjusted basis from late Q2 and listings fall, with the average selling price settling near $1 million (down around 5% from last year), it’s a signal that neither buyers nor sellers are holding all the cards.
In practical terms, this means homes are selling closer to their asking prices and negotiations are feeling more balanced—conditions that reflect what many would call a 'typical' market. The freehold segment is looking especially balanced right now, while condos remain more favorable for buyers. It’s also clear that buyers are becoming comfortable with today’s borrowing costs, and sellers are getting more realistic with their pricing. With fewer listings and prices finding their footing, we could see more hesitant buyers step back in as confidence returns and the pressure to perfectly time the market eases. As always, my approach is to help clients navigate these shifts with insight gained from decades of experience and continuous training with the Toronto Regional Real Estate Board.
