Toronto House Prices On The Rise

Houses

The market for houses in the City of Toronto has improved steadily since the beginning of the year: prices have risen in each of the past three months. Year-to-date, prices are still about 4% below last year, however, prices in April have caught up with last April. And, if the usual spring market trend continues, house prices will surpass 2025 next month. Given the generally gloomy geopolitical and economic outlook, this is very encouraging. Perhaps the 2022 price bubble has finally unwound completely, and we can look forward to steady to rising prices over the next year or so.

The inventory of houses for sale in Toronto tells a similar story. Over the past three months, inventory has fallen from 5 months’ supply to just under 3 months, below last year and edging toward sellers’ market territory. In the more desirable areas of the city, we are seeing bidding wars aplenty. Buyers are clearly hungry to purchase properties that tick all the boxes.

Condo Apartments

The condo market continues to be soft in the City of Toronto, mainly due to oversupply. Condo prices rose in April, but remain well below last year.

Even in the condo market, however, there are some positive signs. The inventory of condos for sale has fallen from just under 8 months’ supply to just over 5 months’ supply since the beginning of the year. Still a buyers’ market, but edging toward balanced market territory.

Sales of condo apartments have also risen steeply since the beginning of the year, and April sales were above last April. Coupled with the declining inventory, these data suggests that the condo market may finally have bottomed out.

Bottom Line

The real estate market in the City of Toronto is recovering in 2026. While prices remain below last year, there are clear signs that the Covid distortions have been completely (or almost completely) unwound. Hopefully we can look forward to stable or gently rising prices going forward.