The Toronto condo market is on pause. It’s uncertain, yes. But it’s also ripe with potential for all, including buyers and sellers. This period of slowness is being felt across the Greater Toronto Area. Sales volumes have dipped. Listings are lingering. Depending on the neighborhood and property features, prices are down as much as 20 % from the pick on March 2022. Buyers are cautious. And yet, there hasn’t been a crash, just stillness.

August emerging positive indicators - more activity, more people looking at different types of properties, the rental market has begun to pick-up providing confidence to investors, there is a strong consensus that the Bank of Canada in the next interest rate announcement, on September 17, will drop a quarter point, and this will provide more buyer confidence as we go into the fall market, and into 2026. Real estate is one of the top three economic engines that drive Canada’s economy, so it is not going anywhere, it is just muddled now.

Sellers who come to the table with a clear strategy are more likely to find success. This means realistic pricing, smart staging, and a solid understanding of local market conditions.

Buyers benefited from an even larger increase in the inventory of listings in August. Average selling prices continued to be negotiated downward due to the elevated choice across market segments. However, some buyers are misreading their opportunities, failing to fully recognize the temporary advantages this market presents.

Whether you are thinking of buying or selling, the Toronto market is giving us real opportunities right now.

If you are unsure of your next move, I would love to chat and help you figure out the best approach.

For the right pricing strategy and timing, call 647-223-0562 or email at victor.alvarez@bell.net.

RENTAL MARKET HEATS UP

The standout story of August was the sizzling rental market, with leasing activity around August 1st reaching levels not seen in more than two years. A mix of factors fueled this surge: students preparing for the new school year, announcements from the provincial government and the Big Five banks, and growing expectations that more corporations will follow with supportive measures. 

This increased demand should give investors more confidence in renting as a viable alternative to selling. If the trend continues, leased rentals could soon outpace new rental listings, with the result being fewer condominiums available for purchase.

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SALES AND LISTINGS ACTIVITY

HOT PRICE POINTSMultiple-offer scenarios were most common at two distinct price ranges:

• $800,000 to $1,250,000 particularly in established, high-demand neighbourhoods.

• $1,800,000 to $2,100,000 where activity also picked up noticeably.

CONFIDENCE VS INTEREST RATES

The number one issue impacting today’s real estate market is consumer confidence. Buyers remain nervous and cautious, preferring a “wait-and-see” approach until they gain a clearer sense of economic stability.

Contrary to common belief, it isn’t just interest rates holding back demand—it’s confidence. That said, recent reports showing slower economic growth and unfavorable employment numbers have increased the probability of an interest rate cut in September. Should borrowing costs ease, more buyers are expected to return from the sidelines to the market, eager to take advantage of current inventory levels.

• Turnkey homes—modern, move-in-ready properties—are selling quickly.

• Homes that are dated or located in oversupplied neighbourhoods continue to sit on the market longer.

• Sellers are being forced to adjust, focusing on smart pricing strategies and staging their homes to attract attention.

NEGOTIATION LANDSCAPE

Today’s market has given buyers more leverage. Even in multiple-offer situations, it is possible to win with a conditional offer—a significant shift from the competitive dynamics of recent years. However, some buyers are misreading their opportunities, failing to fully recognize the advantages this market presents.

For sellers, the message is clear: success depends on smart pricing, strong presentation, and an understanding that performance varies widely by neighbourhood and property type.