May 2026, the time when the spring market typically peaks shows a 10.71% increase in sales over the month of April with the average price up by 1.69% New Listings were also up, 3.5% year and the average days on market was down almost 7% to around 25 days.
The Spring market did not come in with a roar, rather its been fairly steady. There are plenty of buyers out looking, some are taking action while others are trial ballooning offer and or/watching. Interestingly data shows so far this year 30% of homes that sold in Toronto sold for over the asking price! This illustrates the buyers are waiting for the right home in the right location to come on the market and are ready to jump in. Jason Mercer Chief Information Officer of the TTREB has been quoted as saying approximately 100,000 people have buying intentions and are waiting for the right time.
Some positive financial news has come in recently with reduction to variable interest rates, currently a variable rate at the lowest level in years. Combining lower interest rates with better affordability will help buyers who’ve been waiting on the sidelines. The government has brought in some new policies which also help homebuyers. Some of the changes include: CMHC insured Mortgage amounts increased up to a $1.5 purchase price whereby you can have less than 20% down, this is 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 in 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.
Downsizers want to get moving too but the shortage of suitable housing to move into is the biggest barrier for them to take action. They don’t want a tiny condo, but they also don’t want to pay top dollar for a larger suite as its essentially trading dollars for less. If the right housing was available you would see a massive amount of downsizers in action.
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 and the bidding wars are location specific (think Riverdale, The Beaches, High Park/Bloor West Village, mid-town); the outlying suburbs have seen 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
