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 – August 2026

In This Issue:

Essential Tips for Buying in a Competitive Market
Learn how to prepare, move quickly, and make stronger decisions when homes are selling fast.
Read More »
Appraisal 101: How It Works and How to Prepare
Understand what appraisers look for and why the appraisal can affect the outcome of a sale.
Read More »
Going Green? What You Need to Know About Energy-Efficient Homes
See how energy efficiency can affect comfort, costs, resale value, and long-term ownership decisions.
Read More »

Essential Tips for Buying in a Competitive Market

Buying a home in a competitive market can feel stressful, especially when good properties attract multiple offers quickly. Buyers may feel pressured to move fast, stretch their budget, or make decisions before they feel fully ready. The key is not to panic. The strongest buyers prepare before the right property appears, understand what matters to sellers, and make offers that are both competitive and responsible. This report explains how buyers can improve their chances without making reckless decisions.

1. Get Fully Prepared Before You Start Touring

In a competitive market, preparation matters more than speed alone. Buyers should have mortgage pre-approval, proof of funds, a clear budget, and a realistic understanding of closing costs before viewing serious properties. If buyers wait until they find a home to organize financing, they may lose valuable time. A prepared buyer can act quickly without feeling rushed because the major financial questions have already been answered.

2. Know Your Maximum Number Before Emotions Take Over

Competition can make buyers feel like they need to keep increasing their offer. Before entering any bidding situation, buyers should decide their true maximum price. This number should reflect not only what the lender may approve, but what the buyer can comfortably afford after accounting for taxes, insurance, utilities, maintenance, and lifestyle needs. Knowing the limit in advance helps prevent emotional overbidding and post-purchase regret.

3. Understand The Local Market Before Making An Offer

A strong offer is based on evidence, not guesswork. Buyers should review recent comparable sales, average days on market, list-to-sale price ratios, and current inventory. Some properties are priced low to attract multiple offers, while others may already be close to market value. Understanding the local pricing strategy helps buyers avoid both underbidding and overpaying.

4. Be Ready To Move Quickly, But Not Carelessly

Competitive markets reward buyers who can act decisively. However, acting quickly does not mean ignoring important details. Buyers should review property disclosures, ask questions, understand included items, and consider potential repair or maintenance concerns. A fast decision should still be an informed decision. Good preparation makes that possible.

5. Make Your Offer Clean And Clear

Sellers often prefer offers that are easy to understand and likely to close. A clean offer may include a strong deposit, clear timelines, flexible closing terms, and only necessary conditions. Buyers should not remove protections without understanding the risk, but they should avoid unnecessary complications that weaken the offer. The goal is to make the seller feel confident that the transaction will proceed smoothly.

6. Look For Terms That Matter Beyond Price

Price is important, but it is not always the only deciding factor. Some sellers may value a flexible closing date, a lease-back option, fewer delays, or confidence in the buyer's financing. A skilled agent can help determine what matters most to the seller. Matching the seller's needs can make an offer more attractive without requiring the buyer to simply pay more.

7. Avoid Chasing Every Property

Not every home is worth competing for. Buyers should be clear about their must-haves, nice-to-haves, and deal-breakers. Chasing every property can lead to fatigue and poor decisions. In a competitive market, discipline is a major advantage. The right goal is not to win any home. The goal is to secure the right home at a price and with terms that still make sense.

8. Stay Patient After Losing An Offer

Losing an offer can be discouraging, especially after investing time and emotion. However, buyers should treat each attempt as market feedback. If offers are consistently too low, the search criteria may need adjustment. If properties are selling beyond the comfort zone, it may be time to consider different neighborhoods, property types, or timing. Staying patient helps buyers avoid making an expensive decision out of frustration.

Conclusion:
Buying in a competitive market requires preparation, discipline, and strategy. The strongest buyers are ready before the right property appears, understand market value, and know their financial limits. A competitive offer should be strong, but it should also be responsible. With the right plan, buyers can compete confidently without sacrificing their long-term financial stability.

Appraisal 101: How It Works and How to Prepare

An appraisal can play an important role in a real estate transaction, especially when financing is involved. Buyers and sellers often focus on the agreed sale price, but a lender may need an independent opinion of value before approving the final mortgage. If the appraisal comes in lower than expected, it can create stress, delays, or renegotiation. This report explains what appraisals are, how they work, and how buyers and sellers can prepare.

1. What An Appraisal Is

An appraisal is an opinion of a property's value prepared by a qualified appraiser. The appraiser reviews the property, compares it to recent sales, and considers market conditions. The purpose is not to confirm what the buyer wants to pay or what the seller hopes to receive. The purpose is to provide an independent estimate of value, often for the lender's risk assessment.

2. Why Lenders Care About Appraisals

When a buyer uses financing, the property often serves as security for the mortgage. The lender wants to know that the property is worth enough to support the loan amount. If the appraisal is lower than the purchase price, the lender may reduce the approved loan amount or request additional information. This can affect the buyer's ability to close unless the issue is resolved.

3. What Appraisers Look At

Appraisers consider location, lot size, property type, square footage, condition, age, updates, layout, features, and recent comparable sales. They also consider market trends and the desirability of the area. Appraisers are not simply looking at decor or personal style. They are evaluating market value based on evidence and property characteristics.

4. Why Comparable Sales Matter

Comparable sales, often called comps, are one of the most important parts of the appraisal process. Appraisers review similar properties that have recently sold nearby. If the subject property is larger, more updated, or in a better location than the comps, adjustments may be made. If it is less desirable or needs work, that may also affect value. Strong comparable sales support a strong appraisal.

5. How Sellers Can Prepare

Sellers can prepare by making the home accessible, clean, and well maintained. They should provide a list of major updates, repairs, permits, upgrades, and improvements. Receipts, renovation details, and maintenance records can help the appraiser understand what has been done. Sellers should not exaggerate, but they should make sure important improvements are easy to identify.

6. How Buyers Can Prepare

Buyers should understand that an appraisal is not guaranteed to match the purchase price. This is especially important in competitive markets where buyers may offer above list price. Buyers should speak with their lender about what happens if the appraisal is low. They should also understand whether they have enough funds to cover a gap if required and whether their offer includes protections related to financing.

7. What Happens If The Appraisal Is Low

A low appraisal does not automatically end the transaction, but it creates a problem that must be solved. The buyer may bring more cash, the seller may reduce the price, the parties may renegotiate, or additional comparable sales may be reviewed. In some cases, a second appraisal may be requested. The available options depend on the agreement, lender requirements, and the willingness of both parties to work toward a solution.

8. Why Pricing Correctly Matters

For sellers, realistic pricing helps reduce appraisal risk. A property priced far above market value may attract attention but can create problems when financing is involved. A strong pricing strategy uses recent sales, current competition, property condition, and buyer demand. The goal is not only to attract offers, but to support a transaction that can close.

Conclusion:
An appraisal is an important checkpoint in many real estate transactions. It protects lenders, informs buyers, and can influence whether a sale moves forward smoothly. Sellers can prepare by documenting improvements and pricing realistically. Buyers can prepare by understanding lender requirements and planning for possible value gaps. The best transactions are supported by strong pricing, clear evidence, and realistic expectations.

Going Green? What You Need to Know About Energy-Efficient Homes

Energy-efficient homes are becoming more important to buyers, sellers, and homeowners. Rising utility costs, environmental awareness, and comfort concerns all contribute to growing interest in greener properties. However, not every upgrade provides the same value, and not every energy-efficient feature is easy to evaluate at first glance. This report explains what buyers and sellers should know about energy-efficient homes, how improvements can affect ownership costs, and which features may matter most.

1. Understand What Energy Efficiency Really Means

An energy-efficient home uses less energy to provide the same or better comfort. This can involve insulation, windows, heating and cooling systems, appliances, lighting, ventilation, water heating, and smart controls. A truly efficient home is not defined by one feature. It is the result of several systems working together to reduce waste and improve performance.

2. Look Beyond The Marketing Language

Terms like "green," "eco-friendly," and "energy-saving" can sound impressive, but buyers should look for details. What upgrades were completed? When were they done? Were permits required? Are there receipts, warranties, or energy reports? Clear documentation is more valuable than vague claims. Sellers should be prepared to show evidence of improvements rather than relying only on general descriptions.

3. Insulation And Air Sealing Matter

Some of the most valuable energy improvements are not always visible. Proper insulation and air sealing can reduce heat loss, improve comfort, and lower energy bills. Drafty homes can feel uncomfortable even with newer heating or cooling systems. Buyers should pay attention to attic insulation, basement insulation, window seals, door weatherstripping, and signs of drafts or uneven temperatures.

4. Heating And Cooling Systems Affect Long-Term Costs

Heating and cooling often represent a major share of household energy use. Efficient furnaces, heat pumps, air conditioners, boilers, and ventilation systems can reduce monthly costs and improve comfort. However, age, maintenance, sizing, and installation quality matter. A high-efficiency system that has been poorly maintained may not perform as expected. Buyers should review service records where available.

5. Windows And Doors Can Help, But Cost Matters

Newer windows and doors can improve comfort, reduce drafts, and enhance appearance. However, replacement can be expensive. Buyers should evaluate both condition and performance. Sellers should understand that window upgrades may help marketability, but they may not always return every dollar spent. The best improvements are usually those that solve obvious comfort or efficiency problems.

6. Appliances And Lighting Are Easy Wins

Energy-efficient appliances, LED lighting, smart thermostats, and water-saving fixtures are easier upgrades that can appeal to buyers. These improvements may not transform the property's value on their own, but they contribute to a modern and well-maintained impression. For sellers, small efficiency upgrades can support the overall presentation of the home.

7. Consider Solar And Renewable Features Carefully

Solar panels and renewable energy systems can be attractive, but buyers need to understand ownership, contracts, warranties, maintenance, and transfer requirements. A system that is owned outright may be different from one that is leased or financed. Buyers should review all documentation before assuming the feature adds value. Sellers should have the paperwork ready before listing.

8. Energy Efficiency Can Support Resale Value

Many buyers appreciate lower operating costs and improved comfort. Energy-efficient features can make a home stand out, especially when supported by documentation. However, value depends on the market, the quality of the improvements, and buyer awareness. A home that is efficient, comfortable, well maintained, and easy to understand is more likely to appeal to practical buyers.

Conclusion:
Energy-efficient homes can offer lower costs, better comfort, and stronger long-term appeal. Buyers should look past marketing language and evaluate the actual systems, documentation, and performance of the property. Sellers should highlight genuine improvements clearly and provide supporting records. Going green is not just about one upgrade. It is about creating a home that performs better, costs less to operate, and feels better to live in.

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.