Toronto Housing Market | 2026 Home Prices

Q: Will Toronto housing prices go up in 2026?

Toronto home prices are expected to increase moderately in 2026, driven by low housing supply and strong demand. Population growth and falling mortgage rates will encourage more buyers to enter the market.

Toronto Shows December Slump Deepening as Recovery Signals Shift to 2026

Toronto’s housing market ended December under clear pressure, with resale activity slipping again and home prices continuing to trend lower amid elevated inventory and cautious buyer behaviour. Sales declined modestly from November on a seasonally adjusted basis and remained well below typical pre-pandemic levels, while new listings continued to outpace demand, keeping months of inventory firmly in balanced-to-buyer-leaning territory. Price declines were broad-based across low-rise homes and condos, with condominiums facing the sharpest pressure, particularly in the 905, as sellers increasingly adjusted expectations to meet the market and competition intensified late in the year.

Looking ahead to 2026, most analysts expect Toronto’s path forward to remain uneven rather than sharply rebounding, with recovery hinging on improving economic confidence, labour market stability, and clearer signals on trade and growth. Improved affordability and ample supply should gradually entice sidelined buyers back. Still, the abundance of listings and lingering uncertainty suggest price growth will remain muted until demand strengthens enough to absorb excess inventory.

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Toronto Housing Market Highlights

Data from the Toronto Regional Real Estate Board (TRREB) indicates that the average price of resale residential homes sold across Toronto in December 2025 was $942,300, and it decreased of 6.3% compared to a year ago.

TREBB also reported a sales-to-new-listings ratio (SNLR) of 70%, indicating Sellers market conditions in Toronto for December 2025.

The average selling price of a home in Toronto decreased by 6.3% year-over-year to $942,300 in December 2025.
The average selling price of a single-family home in Toronto decreased by 6.3% year-over-year to $1,150,200 in December 2025.
The average selling price of a townhouse/multiplex in Toronto decreased by 8.3% year-over-year to $688,900 in December 2025.
The average selling price of a condo in Toronto decreased by 8.2% year-over-year to $553,500 in December 2025.
The average rent in Toronto is now $2,503 for December 2025.
January 16, 2026: Today’s lowest mortgage rate in Toronto is for a 5 –year fixed.

Composite Home Prices

The average selling price of a home in Toronto was $942,300 for the month of December 2025, that’s decreased by 1% month over month. On a year-over-year basis, Toronto home prices have decreased 6.3% year-over-year.

Single-family Home Prices

The average selling price of a single-family home in Toronto was $1,150,200 for the month of December 2025, that’s decreased by 1.1% month over month. On a year-over-year basis, single-family home prices in Toronto have decreased by 6.3% year-over-year.

Townhouse and Multiplex Prices

The average selling price of a townhouse in Toronto was $688,900 for the month of December 2025, that’s decreased by 1.1% month over month. On a year-over-year basis, the price of a townhouse in Toronto has decreased by 8.3% year-over-year.

Condo Prices

The average selling price of a condo in Toronto was $553,500 for the month of December 2025, that’s decreased by 0.9% month over month. On a year-over-year basis, the price of a condo in Toronto has decreased 8.2% year-over-year.

Transactions – Number of Sales

The number of sales in Toronto was 3,697 during December 2025, that’s decreased by 26.2% month over month. On a year-over-year basis, sales in Toronto have decreased by 8.9% year-over-year.

New Listings

The number of new listings in Toronto was 5,299 during December 2025, that’s decreased by 52.4% month over month. On a year-over-year basis, new listings in Toronto have increased by 1.8% year-over-year.

Real Estate Market

The sales-to-new-listings ratio (SNLR) in Toronto was 70% during December 2025, indicating a Sellers. On a monthly basis, that’s increased by 55% month over month. Toronto’s yearly sales to new listings ratio has decreased by 10.5% year-over-year.

The sales-to-new-listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR below 40% indicates a buyer’s market, where buyers hold the upper hand and greater negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market.

Market Breakdown By Property Type for Toronto