Jun 2026
Average Price
$1,264,739
In the early days of the pandemic, uncertainty made many buyers step back and put their plans on hold. Sales dropped sharply to just 372 units in April 2020, the lowest level of transaction activity recorded in the decade. However, this slowdown didn’t last long. Housing demand picked up quickly and pushed sales to peak levels in the Toronto housing market. Fast forward to now, and the market tells a different story. Sales have currently cooled, averaging between 500 and 1,000 units. Meanwhile, inventory has moved in the opposite direction, with far more homes available now compared to the tight supply seen during the pandemic. With more homes listed for sale, buyers have more choice and more leverage to negotiate better deals.
Buyer demand remained strong, pushing sales from roughly 1,300 transactions in early 2016 to nearly 1,600 by spring 2017. At the same time, active listings increased from about 4,700 units to over 5,200.
As tighter borrowing rules came into play, the market began to shift. According to the Toronto real estate market trends, demand eased, and sales dropped into the 500 to 1,300 range. Meanwhile, inventory settled into a more stable pattern, generally holding between 3,000 and 4,800 units.
At the start of this phase, the market saw a sudden slowdown due to pandemic uncertainty. However, by mid-2020, demand quickly returned, driving a strong rebound in the market. By 2021, sales climbed sharply, frequently reaching between 1,500 and over 2,000 transactions, with March 2021 recording the highest activity in the decade (2,065 transactions). Inventory, on the other hand, didn’t keep up with this rise in demand.
After this peak, the market began to cool as higher interest rates took effect. Sales eased and typically ranged mostly between 700 and 1,200 units. At the same time, inventory started building again, rising from around 4,000 to above 5,000 units.
During this period, inventory expanded significantly, climbing from about 5,000 to over 10,000 units. Meanwhile, sales remained steady, generally ranging between 500 and 1,300 transactions.
Inventory has come down from its peak, settling between 5,600 and 8,000 units, reflecting a gradual tightening compared to mid-2025 levels. Sales remained steady, typically between 550 and 1,000 transactions, without any strong upward movement. The Toronto housing market forecast suggests sales are likely to hold within this stable range through 2026.
Less than 40% signals a buyer’s market.
Between 40% and 60% indicates a balanced market.
More than 60% points to a seller’s market.
During this period, the absorption rate stayed strong, mostly ranging between 60% and 80%.
Moving into this phase, the absorption rate mostly stayed within the 50% to 70% range.
For most of 2020, the housing market conditions in Toronto stayed largely balanced. However, in 2021, the market picked up again, and the absorption rate remained between 50% and 80%, showing strong demand.
The absorption rate gradually moved lower, settling into the 40% to 50% range. By early 2023, based on Toronto real estate market trends, activity picked up again, bringing absorption rates close to 60%.
From mid-2023 onward, the absorption rate mostly stayed between 25% and 45%.
Source: Based on analysis of historical information made available from respective real estate boards.
Among houses for sale in the Toronto real estate market, detached homes recorded 18,229 sales. These houses lead the market in terms of price, averaging around $1.95M.
A total of 13,092 semi-detached homes were sold across the housing market in Toronto at an average price of $1.35M.
Freehold townhouses accounted for 4,173 sales, making them the least sold property type. The average sale price sits at $1.31M.
Within the townhouses for sale segment, condo townhouses recorded 4,908 transactions. They sit at a lower price point, around $951K.
Condo apartments recorded 80,836 sales, far exceeding all other property types. Apartments for sale remain the most affordable in the real estate market in Toronto, with prices near $737K.
In recent years, the rental market, much like the broader Toronto housing market, has been going through a short-term correction and rebalancing phase. Rental prices are currently 8.02% lower year-over-year and 4.74% down year-to-date, making this segment relatively more affordable.
Supported by ongoing population growth, Toronto rental housing prices rose from around $2,600 to above $3,000. Leasing activity followed the same upward path, climbing from roughly 1,500-1,800 leases per month to peaks above 2,600 by mid-2019.
Through this stretch, rental prices mostly stayed within the $2,900 to $3,000 range. Activity in the rental housing market in Toronto also remained fairly moderate, generally landing between 1,300 and 1,500 transactions per month.
At the start of the pandemic, leasing activity dropped sharply. However, this slowdown in the Toronto rental market didn’t last long. Leasing activity picked up again, climbing past 4,600 units by mid-2021, while rental prices remained mostly within $2,700 and $3,000.
During this phase, prices in the Toronto rental housing market climbed quickly, moving from about $3,100 to a peak of $3,748 in May 2023 - the highest level seen in the decade. Activity remained relatively steady, generally between 1,500 and 3,000 transactions per month.
After hitting a peak in May 2023, rents eased slightly but remained relatively high. Meanwhile, leasing activity picked up strongly, reaching a decade high of 6,071 transactions in July 2025.
Rental prices moved lower to around $2,900 to $3,200 range. Leasing activity also came down from earlier highs, settling between roughly 2,700 and 4,000 transactions per month.
The Toronto housing market has earned a spot among the most expensive cities in Ontario, and there are clear reasons behind it. The city’s strong job market, world-class educational institutions, and top-notch conveniences have long attracted immigrants, keeping housing demand consistently high. Now, here’s the other half of the equation and the real reason why home prices in Toronto sharply took off. Even as demand kept climbing year after year in Toronto, housing supply simply didn’t keep up. This gap led to intense competition for available homes, which kept pushing Toronto house prices steadily higher.
However, post-pandemic, with rising interest rates and a growing preference for suburban living - one of the key shifts seen in the Toronto housing market over the decade - the sharp upward trend in home prices has gradually cooled off. Home prices in Toronto are down 9.02% year-over-year and 11.59% compared to five years ago. Currently, the days on market for Toronto MLS listings are also well above levels seen in previous periods. Translation: buyers now have more time to go through homes, negotiate better terms, and avoid making rushed decisions.Breaking Down Each Stage
During this phase, strong economic conditions and historically low interest rates created clear upward pressure on home prices. Starting at around $1M in 2016, the average house price in Toronto steadily moved higher, crossing the $1.20M mark by early 2017.
Following the initial surge, the market shifted into a more balanced phase and property prices mostly stayed between $1.05M and $1.28M.
When the pandemic began in early 2020, uncertainty caused a short dip, but the market recovered quickly. In fact, from early 2021 onward, ultra-low interest rates, remote work trends, and higher savings drove the strongest price growth of the entire period in the Toronto housing market. Prices climbed rapidly, peaking at $1.65M in April 2022. During this phase, most homes were selling between $1.20M and $1.65M.
According to the latest Toronto home price trends, as the Bank of Canada began raising interest rates, the market started to rebalance. Property prices adjusted from earlier highs, with most homes selling between $1.25M and $1.50M.
Toronto home prices have been holding between $1.20M and $1.40M, pointing to a more balanced market. Expert Toronto housing market forecasts indicate that prices are expected to fall, particularly in the fourth quarter of 2026.