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Is the Toronto Housing Market Recovering in 2026?

Industry News

Published

Feb 2, 2026

Is the Toronto Housing Market Recovering in 2026?

Toronto housing market 2026: inventory levels, average prices, DOM trends, and rate impacts explained. Find out if now is the right time to buy or sell.

Reading time: 6 minute read

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Is the Toronto Housing Market Recovering in 2026?

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Toronto's real estate market has been through a reset — and 2026 is shaping up as a pivotal turning point. Here's what the data shows right now.

What Are Toronto Home Prices Doing in 2026?

The average home price in Toronto sits near $1.08 million as of early 2026, according to trreb.ca. That's a modest 4–6% year-over-year gain driven by renewed buyer confidence after the Bank of Canada's rate cuts in late 2024 and 2025. Detached homes in the 416 lead the recovery; condos remain flat.

How Much Has Toronto Inventory Changed?

Active listings in the GTA rose roughly 18% compared to early 2025, giving buyers more options than they've seen in years. Yet supply is still well below pre-pandemic norms. TRREB reports months of inventory hovering near 3.2 — balanced in some pockets, still seller-favoured in others.

How Long Are Homes Sitting on the Market?

Average days on market (DOM) in Toronto is approximately 22–26 days as of Q1 2026 — down from the 30+ day averages seen in 2023. Well-priced freehold properties in high-demand neighbourhoods like Leslieville and Leaside are moving in under two weeks.

What Is Toronto's Price Per Square Foot in 2026?

Condo price-per-sqft in the 416 averages near $950–$1,020, per data tracked by Urbanation. Freehold price-per-sqft for semis and detached is substantially higher — often $800–$1,100+ depending on the neighbourhood and lot size.

Are Interest Rates Still Holding Buyers Back?

The Bank of Canada's overnight rate settled near 2.75% heading into 2026, bringing 5-year fixed mortgage rates to roughly 4.4–4.8%, according to ratehub.ca. That's meaningfully lower than the 5.5–6% peaks of 2023. Affordability is improving, but monthly carrying costs in Toronto remain a stretch for first-time buyers.

Is Immigration Still Driving Toronto Demand?

Canada welcomed over 485,000 permanent residents in 2025, with Toronto absorbing a large share, per IRCC. New arrivals disproportionately target the GTA for work and community ties — keeping rental demand tight and supporting long-term resale fundamentals.

Should You Buy in Toronto Right Now?

The window between rate relief and the next price surge is narrow. Buyers who waited through 2023–2024 now face rising competition again — but still have more negotiating room than in peak 2022.

  • Condos: Buyer's market — room to negotiate on price and closing terms
  • Freehold: Increasingly competitive; multiple offers returning in desirable areas
  • Timing: Spring 2026 is expected to be the most active market in three years

Navigating Toronto real estate in 2026 takes more than data — it takes local expertise. Reach out to the Orchestate platform for a no-pressure market consultation and find out exactly where you stand as a buyer or seller today.

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Tags:

torontomarket-trendshousing-marketmarket-recoverytoronto-real-estate

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