JULY 2026

Market Report

TORONTO & REGION

The high-level raw data flowing from the statistics provided by the Toronto and Region Real Estate Board paints a picture of a residential resale market that is taking a seasonal breather, as it did before the frenzy and then the painful declines flowing from the Covid and post-pandemic housing market.

Reported sales declined in July compared to a year ago by almost 1 percent, from 6,047 to 5,995, a typical seasonal occurrence.

It’s quite common for sales to decline between June and July (with the exception of the Covid market) as consumers focus on summer activities: end of the school year, summer holidays and vacations, and ensuring sales transactions align with the beginning of the next school year in September. Not only sales data, but data related to available inventory, average sale prices, and the length of time it takes properties to sell are all products of the housing market’s seasonality.

During the month of July, only 14,484 new listings came to market, a steep decline from the 17,623 that came to market last year. This almost 18 percent decline is not surprising. Not only does seasonality factor in, but it is a continuation of a decline in properties coming to market that began at the beginning of 2026. Sellers, disappointed with slow market activity and low buyer demand, have either been withholding their properties from the market or removing them in anticipation of more favourable selling conditions. It will not be surprising, in fact, it should be anticipated, that this pattern will reverse with the fall market. Although month-end inventory levels, 26,098, are lower than at the same period last year, they remain high by historical patterns. The reason? Lack of absorption.

The average sale price came in at $1,003,956, 4.5 percent lower than the average sale price for July 2025. Again, a seasonal decline. Last year, between June and July, the average sale price declined by 4.5 percent. This year the decline was similar, coming in at 5 percent. If historical patterns hold, in conjunction with seasonal patterns, we should see a further decline in the Toronto and Region average sale price when August’s resale data becomes available. It is possible that the Toronto and Region marketplace may see an average sale price of under $1 million in August for the first time since the months preceding the Covid-19 pandemic resale market.

A deeper dive into the July residential resale market reveals some interesting and positively promising patterns.

It would appear that the condominium apartment market, at least in the City of Toronto, has finally stabilized and is marginally improving. This is an extremely important development. In July, the condominium apartment market accounted for almost 18 percent of all reported sales for the entire Toronto Region. Even more dramatically, it accounted for 47 percent of all City of Toronto sales, almost half of the 2,242 City of Toronto reported sales for July.

The good news is that whereas overall year-over-year sales declined but almost 1 percent, City of Toronto condominium apartment sales saw an increase of 3.3 percent to 1,054 reported sales. Similarly, while the overall average sale price decreased by 4.5 percent from $1,051,600 last year to $1,003,956 this year, the average sale price of condominium apartments reported sold in July was only 1.6 percent less than last year. All this leads to cautious optimism about Toronto’s condominium resale market. No doubt the fact that the average sale price came in at $672,807 was a contributing factor to the performance of that sector of the market.

Unfortunately, condominium apartment sales in the 905 Region did not fare as well. Year-over-year sales declined by almost 7 percent, with average sale prices dropping by 5 percent to $560,923, more than $100,000 less than the average sale price of condominium apartment sales in the City of Toronto.

The other bright spot in the Toronto and Region resale marketplace is semi-detached property sales in the City of Toronto. Whereas the market overall is riddled with year-over-year declines, all semi-detached properties in the City of Toronto sold in only 24 days, and for 101 percent of their asking price. In Toronto’s eastern trading districts, all semi-detached properties sold for 106 percent of their asking price and in only 17 days. Unfortunately, semi-detached property sales in the City of Toronto represented only 3.9 percent of total reported sales. Notwithstanding these very positive numbers, sales of semi-detached properties declined by almost 7 percent year-over-year, in lockstep with a 10 percent decline in average sale price. These two sets of data appear incomprehensibly contradictory. The answer lies in the available inventory. The pullback in available inventory has left the less desirable and lower-priced semi-detached properties available to buyers.

At the end of July, 37,105 properties were reported sold for the entire Toronto and Region marketplace. That’s less than a 1 percent improvement compared to the same period last year. As we move into August, we should anticipate more seasonality. Prices will decline, perhaps below $1 million, there will be a drop in sales to between 5,100 and 5,200, and we will see further declines in new listings coming to market as well as lower available inventory at month-end. September will be the key month in determining if the market has not only bottomed but has finally begun a rebound, albeit modestly.

Real Estate News

1. Toronto Home Sales Rise in June for Fourth Straight Month
Greater Toronto Area home sales increased for a fourth consecutive month in June, while the seasonally adjusted home
price index also moved higher. Reuters describes the results as a continuation of the market recovery that began after a
slow first quarter.
Source: Reuters | July 3, 2026

2. Ontario Enhanced New Housing Rebate
The Canada Revenue Agency explains Ontario’s enhanced rebate for eligible new or substantially renovated homes.
Depending on the purchase price, buyers may recover up to $80,000 of the provincial HST, with an additional provincial
top-up available in qualifying cases.
Source: Canada Revenue Agency | June 2026

3. Our Designer Poll Reveals the Top Trends for 2026
House & Home’s panel of designers identifies the year’s leading interiors trends, including Art Deco revival, colour
drenching, warm dark-wood kitchens, jewel-box powder rooms, patterned sofas and integrated home wellness spaces.
Source: House & Home | January 20, 2026

4. Open-Concept Homes Are Out—Here’s What’s Taking Their Place
Designers explain the rise of hybrid layouts that preserve a sense of openness while creating more privacy and purpose.
Archways, glass or pocket doors, partial walls, changing materials and strategic furniture placement help define flexible
zones.
Source: Good Housekeeping | July 24, 2026

The Red Door has been on the front lines of delivering support services to homeless families and abused women in Toronto and the GTA since 1982, by providing emergency housing and support services to over 500 families in Toronto.

Your referrals have always been very important to me, now more so than ever. For anyone you refer to me in the purchase and or sale of their home, I will donate a portion of my income towards The Red Door Shelter.

If you would like to refer someone you know, please give me a call at 416-414-8496 or email me at marinapaul@chestnutpark.com .

Your support is needed now,
more than ever!

Real Estate Newsletter – October 2026

In This Issue:

How to Buy Your Dream Home Without Overpaying
Learn how to recognize value, avoid emotional overbidding, and make confident buying decisions.
Read More »
Why Homes Sit on the Market and How to Keep Yours Moving
Understand the common reasons homes do not sell quickly and what sellers can do to improve results.
Read More »
Understanding the Real Estate Transaction from Start to Finish
See how the process works from preparation and offer negotiation through closing day.
Read More »

How to Buy Your Dream Home Without Overpaying

Buying a dream home is exciting, but excitement can sometimes lead buyers to stretch too far. A property may feel perfect because of its layout, location, finishes, or timing, but a smart buyer still needs to understand value. Overpaying can affect monthly comfort, future resale, and long-term financial flexibility. This report explains how buyers can pursue the home they truly want while keeping their decision grounded, strategic, and financially responsible.

1. Define What Dream Home Really Means

Before viewing homes, buyers should separate true needs from emotional preferences. A dream home is not always the biggest, newest, or most impressive property. It is the home that fits your life, budget, location needs, future plans, and comfort level. Buyers who define their priorities early are less likely to be distracted by features that look attractive but do not support their actual goals. A clear list of must-haves, nice-to-haves, and deal-breakers keeps the search focused.

2. Know Your Comfortable Budget Before You Fall In Love

It is much easier to set financial limits before emotions enter the process. Buyers should know their maximum purchase price, but they should also know their comfortable monthly payment. Taxes, insurance, utilities, maintenance, repairs, commuting costs, and lifestyle needs all affect affordability. A lender may approve one number, but your real-life comfort zone may be lower. Buying a dream home should not require sacrificing every other financial priority.

3. Study Comparable Sales

Comparable sales are one of the best tools for avoiding overpayment. Buyers should review similar homes that recently sold in the same area, with similar size, condition, age, and features. The list price alone does not determine value. Recent sold prices show what buyers were actually willing to pay. A strong agent can help interpret comparable sales and explain when a property deserves a premium and when the asking price is unrealistic.

4. Understand The Difference Between Price And Value

A lower-priced home is not always a better deal, and a higher-priced home is not always overpriced. Value depends on location, condition, layout, upgrades, lot quality, future resale appeal, and market demand. A home with fewer repairs, better functionality, and a stronger location may justify a higher price. However, buyers should be careful not to pay a premium for cosmetic details that can be changed later. True value is based on fundamentals, not just presentation.

5. Avoid Emotional Bidding

Multiple-offer situations can cause buyers to feel pressured. The fear of losing a property may lead to decisions that feel exciting in the moment but stressful later. Before submitting an offer, buyers should decide the price at which they would still feel good if they won, and the price at which they would feel relieved if they lost. That line is important. A strong offer should be competitive, but it should not create regret the next morning.

6. Be Willing To Walk Away

The strongest buyers are emotionally interested but financially disciplined. They can love a home and still walk away if the numbers no longer make sense. Walking away from an overpriced property is not failure. It is protection. There will almost always be another opportunity, but recovering from an overextended purchase can take years. Discipline is one of the most valuable tools a buyer has.

Conclusion:
Buying your dream home does not mean ignoring the numbers. It means finding the right balance between emotion, value, and long-term financial comfort. Buyers who define priorities, study comparable sales, understand true affordability, and stay disciplined are more likely to purchase with confidence.

Why Homes Sit on the Market and How to Keep Yours Moving

When a home sits on the market longer than expected, sellers can feel frustrated and uncertain. They may wonder whether buyers are being unrealistic, whether the market has slowed, or whether something about the property is holding the sale back. In many cases, the reason is not one single issue. It may be a combination of pricing, presentation, access, marketing, condition, timing, and buyer perception. This report explains why some homes stall and what sellers can do to regain momentum.

1. The Price May Not Match The Market

Pricing is one of the most common reasons a home sits. Buyers compare your property to others currently listed and recently sold. If the price is too high compared to similar homes, buyers may skip it entirely or wait for a reduction. Overpricing can also make a listing feel stale. The first weeks on the market are often the most important, so a pricing strategy should be based on evidence, not wishful thinking.

2. The Photos May Not Create Enough Interest

Many buyers decide whether to visit a property based on the online presentation. Dark photos, poor angles, cluttered rooms, missing key spaces, or inaccurate editing can reduce showings. Strong photography should make the home look inviting while remaining honest. If buyers are not clicking, saving, or booking showings, the first place to review is often the listing presentation.

3. The Property May Not Show Well In Person

A home can look good online but still disappoint during showings. Odours, clutter, poor lighting, worn finishes, uncomfortable room layouts, deferred maintenance, or overly personal decor can weaken buyer interest. Sellers should think of each showing as a buyer’s first emotional experience with the home. Clean, bright, neutral, and well-maintained spaces usually perform better.

4. Access May Be Too Difficult

If buyers cannot easily view the property, they may choose another one. Restricted showing times, short notice requirements, tenants, pets, complicated entry instructions, or frequently declined appointments can reduce traffic. Sellers do not need to make access unlimited, but they should make it as easy as reasonably possible. More qualified showings usually create better odds of receiving an offer.

5. Repairs May Be Creating Buyer Hesitation

Buyers notice signs of deferred maintenance. Loose railings, damaged flooring, roof concerns, old mechanical systems, water stains, cracked caulking, or visible wear can lead buyers to assume there are larger hidden problems. Some buyers are willing to do work, but they expect the price to reflect it. Sellers should decide whether to repair issues before listing or price the home accordingly.

6. A Strategic Adjustment Can Restore Momentum

If a home is not moving, doing nothing is rarely the best option. The solution may involve a price adjustment, new photos, staging changes, repairs, improved access, refreshed marketing, or repositioning the listing. The right adjustment depends on the cause of the problem. A thoughtful strategy can make the listing feel new again and attract buyers who previously passed it by.

Conclusion:
Homes usually sit on the market because buyers do not see enough value compared to other options. That value can be affected by price, presentation, access, condition, marketing, and timing. Sellers who respond quickly and strategically are more likely to regain momentum.

Understanding the Real Estate Transaction from Start to Finish

A real estate transaction can feel complicated because many steps happen in a short period of time. Buyers and sellers deal with financing, pricing, showings, offers, conditions, inspections, documents, deadlines, lawyers or closing professionals, and moving plans. When people understand the process, they feel more confident and make better decisions. This report provides a clear overview of the transaction from early preparation to closing day.

1. Preparation Comes First

For buyers, preparation means reviewing finances, getting pre-approved, understanding budget, and defining search criteria. For sellers, preparation means reviewing market value, completing repairs, gathering documents, and preparing the property for listing. The quality of preparation often affects the entire transaction. People who prepare early are better able to respond quickly when decisions need to be made.

2. The Search Or Listing Stage Begins

Buyers begin viewing homes and comparing options. Sellers launch their listing and begin receiving showings. This stage is where market expectations become real. Buyers may adjust their wish list after seeing what is available. Sellers may learn how buyers respond to the property, price, and presentation. Good communication with an agent is important because the market may provide feedback quickly.

3. Offers And Negotiation Create The Agreement

When a buyer is ready, they submit an offer. The offer usually includes price, deposit, closing date, included items, excluded items, conditions, and other terms. The seller can accept, reject, or counter. Negotiation may involve more than price. Timing, conditions, repairs, financing, and flexibility can all matter. Once both sides agree, the transaction moves into the next stage.

4. Conditions Must Be Satisfied

Many agreements include conditions such as financing, inspection, insurance, document review, appraisal, or sale of another property. These conditions give the buyer or seller time to confirm important details. Deadlines matter. If conditions are not satisfied or waived by the required date, the transaction may not move forward. This stage often requires quick action and careful communication.

5. Inspection And Due Diligence Protect The Buyer

Inspection and due diligence help the buyer understand what they are purchasing. An inspector may identify maintenance issues, safety concerns, or larger problems. Buyers may also review documents, property disclosures, permits, utility costs, zoning, or condominium information where applicable. The purpose is not always to find perfection. The purpose is to understand risk before completing the purchase.

6. Closing Day Completes The Transaction

On closing day, funds are transferred, documents are finalized, and ownership changes hands. Buyers receive access according to the agreement, and sellers receive proceeds after payouts and adjustments. Closing day can feel exciting, but it is the result of many earlier steps. A smooth closing usually comes from strong preparation, clear communication, and meeting deadlines throughout the process.

Conclusion:
A real estate transaction becomes less stressful when the steps are understood. Preparation, search, offer, negotiation, conditions, due diligence, financing, legal work, and closing all play important roles. A clear process leads to better decisions and a smoother experience.

JANUARY 2026: REAL ESTATE MARKET REPORT

We are only happy when we forecast something that actually comes to pass, AND it is positive. The majority of real estate analysts and industry pundits had no problem forecasting what was likely to be revealed about the Toronto and Region residential resale market in January, and sadly, they got it right. But no one is happy.

The Toronto and Region resale data (provided by the Toronto Regional Real Estate Board) speaks to the weakest start for any January in twenty years. Every category of record keeping produced negative results: sales, inventory, average sale prices, and the number of days homes remained on the market before they were reported sold. A deeper dive into the data indicates that some sectors of the Toronto and Region resale market are much more positive than others, which ultimately speaks to the pent-up demand that is being constrained by so many local and geo-political factors.

Only 3,082 homes traded hands in the greater Toronto Region. The slowest start in decades. On a per capita basis the number is even lower, given that twenty years ago the area’s population was approximately half its current size. A near 20 percent decline compared to January 2025, already one of the weakest January’s in recent record, is quite concerning. Hopefully these results are not a sign of further market deterioration but a reaction to very cold, snowy conditions locally, while consumers continue to adjust to a new chaotic, world order.

Interestingly even though the number of new listings that came to market declined by over 13 percent compared to last January, entering February inventory levels were up by over 8 percent. At the beginning of February almost 18,000 homes are available to buyers. The increase in inventory was directly related to January’s declining sales. Basically, sales fell faster than new listings; and as a result, inventory levels are higher even though fewer new listings came to market this January compared to last year.

Fewer listings coming to market is no doubt a reflection of sellers’ lack of market confidence. With prices declining and sale cycles approaching two months, it would appear only those sellers that are pressed to come to market are doing so. January’s average sale price may have also influenced those reluctant sellers.

In January the average sale price for all properties reported sold, including condominium apartments, came in at $973,289, 6.5 percent lower than last year, and the first time it has fallen below $1 million since before the Covid pandemic market. Taken alone, January’s average sale price is very misleading. In the City of Toronto, more than half of all reported sales – there were 1,067 in total – were condominium apartments. The average sale price generated by the 568 condominium apartments reported sold was only $631,932. The average sale price for all ground level properties sold in the City of Toronto came in at almost $1,200,000, including less expensive townhouses that sold at an average sale price of $876,585.

Average sale prices generated in the 905 Region were substantially less than City of Toronto. The average sale price for all properties sold was almost 30 percent lower in the 905 Region compared to Toronto, and that does not take into account the heavy weighting of condominium apartments in Toronto. The decline in the average sale price below $1 million, and particularly in the City of Toronto, is primarily condominium apartment sales driven.

It is no surprise that properties took longer to sell in January than they have in years. Days on market have been increasing regularly since the peak of the Toronto and Region resale market in the first quarter of 2022. The increase this January compared to last year was one of the largest, pushing days on market over 40, a number not seen since January 2009. In January 2010 days on market dropped to 28. The length of time properties spent on the market was not universal but varied by housing type and location. It is not surprising that condominium apartments languished, on average, for more than 50 days. Semi-detached properties in the 905 Region sold in 37 days and in only 34 days in the City of Toronto. In Toronto’s eastern trading areas all semi-detached properties sold (on average) in just 21 days, 53 percent faster than the overall days on market, and even more astonishingly, for 109 percent, yes 109 percent, of their asking price. Unfortunately, there were only 30 reported sales of semi-detached properties in all of Toronto’s eastern districts.

The most punishing aspects of the Toronto and Region resale market all came to play in January. Uncertainty has been a market factor since the Trump administration took office in early 2025. Affordability, although it has improved, remains a barrier to homebuying, even with the average sale price declining over 8 percent in January. Lastly, employment uncertainty is top of mind. Statistics Canada reported that in January 25,000 jobs had been lost.

There is no doubt that confidence will return at some point in 2026. If you are a buyer with capital, at this point in time you have time and leverage and therefore the best market opportunity in decades. As confidence returns, and buyers sense the change, they will begin to move before the market opportunity evaporates, as it will. Unfortunately, there are no concrete indicators as to when that will happen. That is the forecast the market is very impatiently waiting for.