Homes for Sale in Toronto: What Buyers Need to Know Before Purchasing in 2026

Price Trends: Moderation After the Peak

Toronto home prices have adjusted from their February 2022 peak, when the average GTA price exceeded $1.3 million. As of November 2025, the market has settled into a more sustainable range:

These year-over-year declines represent a market recalibration rather than a crash. Prices remain significantly higher than pre-pandemic levels, but the unsustainable growth of 2020-2021 has been corrected. For buyers, this means more realistic pricing and better value compared to the peak.

Inventory and Market Pace: More Choice, Less Pressure

One of the most significant shifts for buyers is the increased availability of homes. The supply-demand balance has moved decisively in favor of purchasers:

• Active Listings: 24,549 in the GTA (+12.5% YoY), with 9,365 in the City of Toronto (+8.1% YoY)
• Months of Supply: 4.9 months—firmly in balanced territory (3-5 months is considered balanced)
• Average Days on Market: 56 days in the GTA (up from 49 days last year), 32 days median in Toronto
• Sales-to-New-Listings Ratio: 45%—indicating neither buyers nor sellers have overwhelming advantage

Downtown Toronto: Urban Living and Condo Opportunities

The downtown core remains Toronto's most dynamic area, with unparalleled access to employment, entertainment, dining, and transit. The condo market has softened considerably, creating entry opportunities:

• • Studio and one-bedroom units: $300,000 - $600,000
• • Two-bedroom units: $600,000 - $850,000
• • Three-bedroom units: $850,000+

Key Considerations: Condo fees can be substantial ($400-800/month), impacting affordability calculations. However, walkability, transit access (TTC subway, streetcars), and lifestyle amenities offset these costs for many buyers. New construction condo prices are projected to decline 7.3% to approximately $1,425 per square foot in 2025, creating potential value in pre-construction purchases.

North York: Significant Price Corrections

North York has experienced more pronounced price declines than the city average, creating compelling value propositions:

• • Detached homes: $1,320,000 median (-18.3% YoY)
• • Condos: $550,000 median (-12.7% YoY)

Why Consider North York: Excellent schools, established neighborhoods, Yonge subway line access, proximity to Highway 401, diverse dining and shopping. The price corrections make this area particularly attractive for buyers who were priced out during the peak.

Transit Advantage: Multiple TTC subway stations (Finch, North York Centre, Sheppard-Yonge) provide quick access to downtown. The new Line 6 Finch West LRT, opening December 2025, further enhances connectivity.

Etobicoke: Family-Friendly with Waterfront Appeal

Etobicoke offers a suburban feel within Toronto's boundaries, with excellent schools, parks, and waterfront access. Neighborhoods like Mimico, Long Branch, and Kingsway are particularly popular.

• • Strong school ratings (important for families)
• • Lake Ontario waterfront trails and parks
• • GO Transit access (Mimico, Long Branch stations)
• • Mix of detached, semi-detached, and townhouse options

Etobicoke represents a middle ground between downtown intensity and full suburban living, appealing to buyers who want space without sacrificing urban amenities.

Scarborough: Affordability and Growth Potential

Scarborough offers some of Toronto's most affordable housing, with significant diversity in property types and neighborhoods. Areas like Agincourt, Woburn, and West Hill provide good value.

• • Lower price points than central Toronto
• • TTC subway access (Line 2 Bloor-Danforth extension)
• • Planned Scarborough Subway Extension (future value driver)
• • Large lots and more space per dollar

For buyers willing to commute or work remotely, Scarborough delivers exceptional value. The planned transit improvements should support long-term appreciation.

East York: Hidden Gem for Value-Seekers

East York combines the charm of established neighborhoods with relative affordability compared to downtown. Areas like Leaside, Thorncliffe Park, and Danforth Village offer distinct character.

• • Mature tree-lined streets with character homes
• • Strong community feel and local businesses
• • TTC access (Line 2, bus routes)
• • Proximity to Don Valley trails and parks

East York appeals to buyers seeking neighborhood character and community without the premium prices of areas like Leslieville or the Beaches.

First-Time Buyer Programs and Incentives

Ontario and federal governments offer several programs to help first-time buyers enter the market:

• First Home Savings Account (FHSA): Contribute up to $8,000/year ($40,000 lifetime) with tax-deductible contributions and tax-free withdrawals for home purchase
• Home Buyers' Plan (HBP): Withdraw up to $60,000 from RRSP ($35,000 per person, $70,000 for couples) tax-free for down payment
• Land Transfer Tax Rebate: Ontario first-time buyers receive up to $4,000 rebate on provincial land transfer tax; Toronto buyers get additional $4,475 municipal rebate
• GST/HST New Housing Rebate: Partial rebate on GST/HST paid for new construction homes under $450,000

For comprehensive details on maximizing these programs, see our guide on First-Time Home Buyer Incentives in Ontario.

1. Get Pre-Approved (Not Just Pre-Qualified)

A full mortgage pre-approval (not just pre-qualification) demonstrates you're a serious buyer and clarifies your budget. This involves:

• • Credit check and income verification
• • Rate hold (typically 90-120 days)
• • Clear understanding of maximum purchase price
• • Stronger negotiating position with sellers

2. Don't Skip the Home Inspection

In the current balanced market, you have the leverage to include inspection conditions. Use it. A $500-700 inspection can save you tens of thousands in unexpected repairs.

• • Hire a qualified, experienced inspector
• • Attend the inspection to ask questions
• • Use findings to negotiate price reductions or repairs
• • Walk away if major issues are discovered

3. Research Comparable Sales Thoroughly

With properties selling below asking price, understanding true market value is critical. Research recent sales (last 3-6 months) of similar properties in the same neighborhood.

• • Use HouseIndex's MLS search to view sold prices
• • Adjust for property condition, lot size, renovations
• • Consider days on market (longer = more negotiating room)
• • Factor in seasonal trends (spring/fall typically stronger)

4. Negotiate Strategically

With homes selling 3% below asking on average, don't be afraid to negotiate. However, be strategic:

• • Start with a reasonable offer based on comparables (not lowball)
• • Negotiate beyond price: closing dates, included appliances, repairs
• • Be prepared to walk away if terms don't work
• • Move quickly on well-priced properties in desirable areas

5. Consider Total Carrying Costs

Your mortgage payment is just one component of homeownership costs. Budget for:

• • Property taxes (1-1.5% of home value annually in Toronto)
• • Condo fees (if applicable, $400-800+/month)
• • Home insurance ($1,500-3,000/year)
• • Utilities (hydro, gas, water: $200-400/month)
• • Maintenance reserve (1% of home value annually)

6. Think Long-Term

Real estate is a long-term investment. Consider:

• • Will this home meet your needs for 5-7+ years?
• • Is the neighborhood improving or declining?
• • Are there planned infrastructure projects (transit, schools)?
• • Can you afford the home if rates rise or income decreases?

Toronto's Expanding Transit Network

Toronto's public transit is undergoing significant expansion, improving connectivity and potentially driving property values:

• Line 6 Finch West LRT: Opening December 2025, this 11-kilometer light rail line with 18 stops connects Finch West station to Humber College, improving access to North York and Etobicoke
• TTC Accessibility: 58 of 70 subway stations projected to be fully accessible by March 2025, improving mobility for all residents
• GO Transit Expansion: Ongoing electrification and frequency improvements across the network, with completion phases between 2025-2032. Lakeshore West, Lakeshore East, and Kitchener lines are most popular

School Considerations for Families

For families, school quality is often a primary consideration. However, school rankings should be viewed critically:

• Fraser Institute Rankings: Annual rankings based on EQAO test results are widely referenced but controversial. The Toronto District School Board (TDSB) cautions these rankings provide a narrow view and don't account for socioeconomic factors or broader student experience
• Beyond Rankings: Visit schools personally, speak with principals and teachers, review programs (French immersion, arts, STEM), consider class sizes and extracurriculars
• Public vs. Private: Toronto has excellent public schools (TDSB, TCDSB) and prestigious private options. Factor tuition costs ($20,000-40,000/year) into affordability if considering private education

Is now a good time to buy a home in Toronto?

Yes, 2026 presents a favorable environment for buyers compared to recent years. The market is balanced, with 12.5% more inventory than last year, properties spending longer on market (56 days average), and homes selling 3% below asking price on average. Interest rates have declined from their 2023 peak, improving affordability. However, prices remain elevated by historical standards, so buyers should focus on long-term value rather than trying to time the absolute bottom. If you find a property that meets your needs at a monthly payment you can sustain, and you plan to hold for 5-7+ years, current conditions are reasonable for purchasing.

How much does the average home cost in Toronto?

As of November 2025, the average home price in the Greater Toronto Area (GTA) is $1,039,458, down 6.0% year-over-year. Within the City of Toronto specifically (416 area code), the average is $1,036,362, down 4.1% year-over-year. However, these averages mask significant variation by property type: condominium apartments average $663,290, semi-detached homes $997,499, freehold townhouses $913,078, and detached homes $1,346,017. Prices also vary dramatically by neighborhood—downtown condos can start under $400,000, while detached homes in premium areas exceed $2 million. Your actual budget will depend on the property type and location you're targeting.

What are the best neighborhoods in Toronto for first-time buyers?

For first-time buyers, the best neighborhoods balance affordability, transit access, and future appreciation potential. Downtown Toronto condos offer the most accessible entry points, with some studio units selling for $300,000 or less in 2025. North York has experienced significant price corrections (condos down 12.7% year-over-year), creating value opportunities with excellent subway access. Scarborough offers the most affordable housing within Toronto, with strong future potential from planned transit improvements like the Scarborough Subway Extension. East York neighborhoods like Danforth Village provide character homes at lower prices than central Toronto. Outside Toronto proper, Brampton, Mississauga, and Vaughan offer more space and newer construction at lower price points, though with longer commutes.

Should I choose a fixed or variable mortgage rate in 2026?

In 2026's declining rate environment, variable mortgages may offer savings if the Bank of Canada continues cutting rates. Currently, the best 5-year variable rates are around 3.45%, compared to 3.94% for fixed rates. If you expect further rate cuts (consensus forecasts suggest 2-3 more cuts in 2026), variable could save you money. However, variable rates carry risk—if rates rise unexpectedly, your payments increase. Choose variable if you have financial flexibility, can handle payment fluctuations, and believe rates will continue declining. Choose fixed if you prefer payment certainty, are stretching your budget, or are risk-averse. Many buyers opt for fixed rates for peace of mind, even if it costs slightly more. Consult a mortgage broker to model both scenarios based on your specific situation.

How long does it take to buy a home in Toronto?

The home buying timeline in Toronto typically spans 3-6 months from initial search to closing, though it varies significantly based on your preparedness and market conditions. The process includes: mortgage pre-approval (1-2 weeks), property search (2-8 weeks depending on criteria and market), offer and negotiation (1-3 days), home inspection (1 week), financing finalization (2-3 weeks), and closing (typically 30-90 days from accepted offer). In the current balanced market with elevated inventory, buyers can afford to be more selective, potentially extending the search phase. However, well-priced properties in desirable neighborhoods still move quickly. Being pre-approved, having your down payment ready, and working with experienced professionals can significantly accelerate the process.

What first-time buyer incentives are available in Toronto?

First-time buyers in Toronto can access several valuable programs: The First Home Savings Account (FHSA) allows tax-deductible contributions up to $8,000/year ($40,000 lifetime) with tax-free withdrawals for home purchase. The Home Buyers' Plan (HBP) lets you withdraw up to $35,000 per person ($70,000 for couples) from RRSPs tax-free for your down payment. Ontario first-time buyers receive up to $4,000 rebate on provincial land transfer tax, and Toronto buyers get an additional $4,475 municipal land transfer tax rebate—combined savings of up to $8,475. The GST/HST New Housing Rebate provides partial rebates on new construction homes under $450,000. These programs can significantly reduce your upfront costs and improve affordability. For comprehensive details and strategies to maximize these incentives, see our guide on First-Time Home Buyer Incentives in Ontario.