Market Trends and Observations:
Toronto's market remains technically balanced, but the direction of travel matters — and right now, momentum is tilting toward buyers. Months of Inventory has climbed to 5.75, up more than 1 full point in just three months, signaling a softening pace and longer decision cycles.
What This Means for You
For Buyers:
For buyers, leverage is quietly building. Rising inventory — especially in the condo market — is opening the door to firmer negotiations on both price and conditions, particularly on listings that have been sitting for 30 days or more. The data supports patience and discipline.
For Sellers:
Strategy matters more than ever. Homes priced at or above recent summer comparables are sitting longer, while properties positioned 3–5% below recent highs are seeing the strongest activity in the critical first two weeks. The market is no longer rewarding “test the price” strategies.
It's also essential to recognize that not all segments are behaving the same. Freehold homes continue to show relative strength, with sellers maintaining some pricing power. Condos, however, have clearly shifted into buyer-favourable territory — and require a very different approach to pricing, timing, and expectations.
For Sellers:
Looking ahead, Spring 2026 will bring more listings, as it typically does, but meaningful price growth is unlikely in the near term. With inventory levels elevated and momentum continuing to build, the market could tip fully into buyer territory by early 2026. A more stable environment is more likely later in the year as seasonal demand returns.
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