Toronto Housing Market Sharply Reverses | Experience matters. Results follow

After more than 20 years as a full-time Realtor® in the Greater Toronto Area, I’ve seen our market go through its share of ups and downs—but the recent shift is one of the sharpest in recent memory. Toronto is now in the moderate bubble-risk range, with inflation-adjusted home prices falling around 10% year-over-year—the steepest reset among major global cities. Benchmark pricing has softened too; Toronto’s composite home-price measure is down about 5% year-over-year (seasonally adjusted), with values hovering near $931,000. While condo affordability appears slightly improved based on income alone, the reality sets in when you factor in mortgage interest, maintenance, taxes, and the risk premium: owning remains significantly more expensive than renting for many families. For buyers, sellers, and investors, this creates a narrow window of opportunity—prices are softer, but if demand returns faster than new supply, the market could tighten quickly. To restore 2019-level affordability, Toronto would need to increase annual housing starts by at least 50% over the next decade. It’s a clear reminder of the supply challenges—and why working with an experienced, award-winning agent matters in navigating this evolving landscape.