For years, the Greater Toronto Area (GTA) real estate market has been a daunting landscape for anyone without a massive down payment or a high-stakes appetite for bidding wars. However, the tide has officially turned. As we enter 2026, the data from the final Toronto Regional Real Estate Board (TRREB) Market Watch report of Dec 2025 confirms a significant shift in market dynamics.
If you have been waiting on the sidelines, the “Year of the Buyer” isn’t just a catchy slogan, it is a reality backed by surging inventory, declining prices, and a massive increase in negotiating power. Here is why 2026 is shaping up to be the best opportunity for Toronto buyers in over a decade.
The Numbers Don’t Lie: GTA Home Prices are Retracting
The most direct evidence of a buyer-friendly market is the downward trend in selling prices. According to the TRREB report, the annual average selling price for a home in the GTA was $1,067,968 in 2025, representing a 4.7% decrease from the $1,120,241 average recorded in 2024.
The drop was even more pronounced in the final month of the year. In December 2025, the average selling price fell to $1,006,735, a 5.1% year-over-year decline. For buyers, this represents a “discount” of over $50,000 compared to the same time last year on an average property. This cooling of prices is a direct result of “economic uncertainty” weighing on consumer confidence, leading to fewer sales and more room for negotiation.
Inventory is at a Multi-Year High
One of the greatest frustrations for Toronto buyers in the past was the lack of choice. When only a handful of homes are available, bidding wars become inevitable. That is no longer the case.
At the end of December 2025, there were 17,005 active listings on the TRREB MLS System. This is a staggering 17.5% increase in inventory compared to the 14,476 listings available at the end of 2024.
With more homes on the market and fewer buyers competing (sales were down 11.2% annually in 2025), the “scarcity” factor has vanished. This elevated inventory allows buyers to be selective, take their time with viewings, and avoid the pressure of making an offer within hours of a listing going live.
The Power Shift: Days on Market and Negotiations
In a seller’s market, homes sell in days. In the current 2026 landscape, the “Days on Market” metric has climbed significantly, giving buyers the upper hand.
- Average Listing Days on Market (LDOM): 41 days (up 13.9% from 2024).
- Average Property Days on Market (PDOM): 65 days (up 18.2% from 2024).
When a home sits on the market for over two months, sellers become much more willing to negotiate on price, closing dates, and conditions (such as home inspections and financing). TRREB CEO John DiMichele highlighted that this environment provides “financial breathing room” for consumers, as the elevated inventory is “allowing for selling prices to be negotiated downward”.
Affordability is Finally Trending in the Right Direction
While interest rates remain a concern for many, the overall cost of homeownership in the GTA is becoming more manageable. TRREB President Daniel Steinfeld noted that “The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower“.
As of November 2025, the Bank of Canada Overnight Rate sat at 2.3%, with the Prime Rate falling to 4.5%. While 5-year mortgage rates were still averaging around 6.09% at that time, the combination of lower purchase prices and a stabilizing rate environment has “set the market up for recovery”.
For a buyer in 2026, the “Stress Test” is slightly less daunting when the base price of the home has dropped by 5% to 6%.
Regional Opportunities: Where the Best Deals Are
The price drops aren’t just limited to downtown Toronto. In fact, some of the most significant opportunities for buyers are in the surrounding suburbs (the “905” area).
- Detached Homes in the 905: The average price dropped 7.0% year-over-year to $1,239,882 in December 2025.
- Condos in the 905: The average price saw a massive 9.5% decline, falling to $555,110.
- Semi-Detached Homes: Prices across the entire TRREB area dropped by 11.4% in December 2025, with the average price falling to $957,357.
Whether you are looking for a condo in Mississauga or a detached home in York Region, the data suggests that sellers in these areas are feeling the pressure to adjust their expectations more sharply than those in the 416 core.
The “Pent-Up Demand” Factor: Why You Shouldn’t Wait Too Long
While 2026 is the Year of the Buyer, this window of opportunity may not stay open forever. TRREB experts suggest that there is significant “pent-up demand” waiting to be satisfied.
TRREB Chief Information Officer Jason Mercer points out that once households feel more confident in their employment situation (the Toronto unemployment rate was 8.7% in October 2025), sales will likely increase. If you wait until the economy is “perfect,” you may find yourself competing with thousands of other buyers who have been waiting for the exact same signal, leading to a return of price growth.
Strategy for 2026 Buyers: How to Win
To make the most of the “Year of the Buyer,” follow these three tips:
- Negotiate Hard: With 65 days as the average time a property stays on the market, don’t be afraid to offer below the asking price, especially on listings that have been active for 30+ days.
- Include Conditions: The days of “no-condition” offers are largely gone. Use your leverage to include a home inspection and a financing condition to protect your investment.
- Watch the Condo Market: With condo prices in the 905 area down nearly 10%, this segment offers the most accessible entry point for first-time buyers in years.
Conclusion
The Toronto real estate market in 2026 is a far cry from the hyper-competitive environment of the early 2020s. With inventory up 17.5%, prices down 5.1%, and homes taking weeks longer to sell, the power has shifted firmly into the hands of the buyer.
If you have your financing in order and a stable employment outlook, the next 12 months represent a rare opportunity to secure a home in the GTA on your own terms. 2026 isn’t just another year, it’s your year to finally break into the market.
