The Toronto housing market has taken a notable turn, with inflation-adjusted home prices falling about 10% year-over-year—the sharpest adjustment among global cities. Benchmark prices have also eased, with the composite home-price measure down around 5% over the same period, bringing average values close to $931,000. While central condo affordability may look more attractive based on income alone, factoring in mortgage interest, maintenance, taxes, and the risk premium still keeps ownership costs well above those of renting.
For those of us analyzing the Greater Toronto Area market daily, this shift signals a unique—albeit brief—window for buyers and sellers. Prices are softer, but if demand picks up before new supply arrives, the market could tighten quickly again. With Toronto needing to increase annual housing starts by at least 50% over the next decade just to reach 2019 affordability levels, it highlights the ongoing supply challenge. As someone who specializes in comparative market analysis, I pay close attention to these shifts to help my clients make informed decisions—whether that means finding the right buying opportunity or maximizing returns on the sale of your home.
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