Toronto Fall Market Is Underway

Houses

House prices edged up modestly in September, although the month got off to a slow start. During the first two weeks, average prices remained below summer levels. The final two weeks, however, were much stronger, with prices more than 20% higher than in the first half of the month. This suggests that momentum is building as we head into October, which could be a healthier month for the market.

Despite this recent improvement, average house prices year-to-date in 2026 remain about 4% below 2025 levels. In other words, we’re still seeing the market work through the correction that began when the housing bubble burst in 2022, with no clear signs yet that prices have reached the bottom.

The supply of houses for sale remained steady at around four months’ worth of inventory. With the exception of January, inventory levels have been at or below those of last year. The market also remains in balanced territory, meaning conditions are relatively even between buyers and sellers.

While many communities across the GTA and the province are experiencing buyers’ markets, the City of Toronto continues to hold up relatively well. Anecdotal evidence suggests that some of the city’s most desirable neighbourhoods, for example, High Park/Bloor West, Central Etobicoke and the Beaches, may be performing even better.

Condo Apartments

The Toronto condo market continues to face challenges. Prices fell in September, with little sign of the usual fall-market pickup, and year-to-date prices are now about 6% below last year’s levels.

Like the housing market, condos are still working through the correction that began in 2022. However, there are reasons to believe that the condo market could take longer to recover.

One important factor is the rental market. Roughly half of Toronto’s condos are rental properties, and the rise in interest rates in 2022 made many of these investments considerably less profitable. At the same time, ongoing delays and backlogs at the Landlord and Tenant Board have added to the frustration of being a landlord. As a result, some condo owners are becoming increasingly discouraged with the rental business.

Sales of condos have been very similar to last year, but the the inventory of condos for sale remains stubbornly high. This keeps the market firmly in buyers’ market territory, giving buyers more choice and greater negotiating power. With the challenges facing condo investors unlikely to disappear overnight, it may take some time for inventory to come down and prices to find a bottom.

Bottom Line

Houses: Toronto’s housing market continues to work through the correction that began in 2022, and there are still no clear signs of a sustained turnaround. Given the uncertainty surrounding the conflict in the Middle East, along with signs that inflation and interest rates may be moving higher, the current trend could continue for at least the next few months.

Condos: The condo market faces an additional challenge beyond the broader price correction: the declining appeal of condos as rental investments. With prices falling and inventory remaining high, the condo market may take longer than the housing market to stabilize and begin recovering.

Overall, Toronto’s housing market is showing some resilience, particularly in the detached and other ground-oriented home segments. Condos, on the other hand, continue to face greater headwinds. For buyers, this may create opportunities, especially in the condo market, while sellers will need to be realistic about pricing and current market conditions.