January 2026 market data shows a drop in sales as cold and snowy winter weather hammered the Toronto area.  Home sales fell 19.3%  and new listings declined by 13.3%.  Average prices dipped 6.5% and homes spent more time on the market before selling.  The Spring market has yet to kick in but its coming once the warmer weather arrives, which is soon!   Interestingly, so far this year 30% of homes that sold in Toronto sold for over the asking price!   This illustrates the buyers are there, waiting for the right home to come on the market.  

Reductions to variable interest rates, currently a variable rate at the lowest level in years, a 3 year variable can be had at less than 4%.  With lower prices and interest rates, affordability has improved considerably which is great news for buyers.   The government has brought in some new policies which also help homebuyers.   Some of the changes include:  insured Mortgage amounts have been increased up to a $1.5 purchase price from $1 Million; the opportunity to take a 30 year amortization; and borrowers no longer have to be stressed tested again if they change mortgage lenders.  

First time home buyers are the biggest segment going into 2026. Its expected 75% of buyers will be in the market for the first time.  Low rise housing such as detached, semi-detached and townhomes in Toronto is fairing quite well.  Condo sales are relatively soft especially for the smaller units, larger suites in good buildings are selling well in Toronto.  The 905 condo buyer has the edge right now, there’s more inventory to choose from and being able to negotiate on price is a refreshing change. 

Pre-construction condos sales are practically non-existent.  The condos being built right now were sold years ago or they’ve transitioned to be purchase built rentals.   Very few new condo developments will see starts any time soon. 

There’s a lot to unpack in the current market, it varies dramatically by region and house type.  To learn more and for more in depth analysis reach out to me for answers to your questions. I have the data, information.

Key Takeaways:

*The Toronto market remains fairly stable, the outlying areas are seeing the biggest slowdown.

*Sellers must present their property well to stand out and be priced realistically  =  the formula for success.

*Buyers have more choice in all housing types and in many cases negotiating power.  Its very much a buyers market in the condo space.

More than ever you must have an experienced Realtor working for you!  A Realtor that understands the new rules, the dynamics of the current market and a Realtor that understands the nuances of your neighbourhood and areas of interest. You need an experienced full time Realtor, one with boots on the ground all day, everyday.  One that has strong analytical, negotiation and communication skills.  One that provides the right Comparative Market Analysis (CMA) on properties in your area, has strong project management and quality marketing, someone who can help navigate the process.

I’ve been a successful Realtor for 23 years and have worked in all types of markets.  I’ve seen a lot, and I know a lot.  You’ll receive insights, strategic thinking and sound knowledge and a detailed analysis on whats happening in your neighbourhood and area of interest.  If we need deeper information on an area outside of my core base area, I will bring in one of my trusted Realtors to assist.

I pride myself in taking very good care of my clients and past clients will attest to that.  My work is important work for you.  I will be by your side always, with no pressure sales tactic, with guaranteed reliable, knowledgable professional service.

I would love to speak with you further, please reach out to me and we’ll get the conversation started.

Terri Perras