Current Market Conditions

Happy New Years readers!

As we enter 2026, lets see how December’s Real Estate Market wrapped up! The market is showing signs of steady balance. According to the latest real estate news, total home sales in the GTA dropped to 3,697, that is down nearly 9% from December 2024.

The average home price stands at approximately $1,006,735, marking a 5.1% decline compared to last year. This follows a trend where home prices have moderated after years of strong growth, reflecting a market adjusting to changing affordability and buyer expectations.

The MLS HPI Composite benchmark is down 6.3% year-over-year, reinforcing this pricing adjustment. Meanwhile, homes are staying on the market longer, averaging 65 days, signaling that buyers are taking more time to consider their options.

Link below for previous Toronto Housing Market Reports

• Toronto Housing Market Report – December 2025
• Toronto Housing Market Report – November 2025
• Toronto Housing Market Report – October 2025
• Toronto Housing Market Report – September 2025

Demand and Interest Rates

The demand side of the Toronto Real Estate Market remains cautious but stable. Interest rates have held steady at 2.25%, helping to improve affordability compared to previous years. This low rate environment means buyers are more confident in their borrowing power, even as they proceed carefully.

Buyers continue to favor well-maintained or renovated freehold homes, with detached and semi-detached properties seeing stronger demand than condos, which have weakened in appeal.

Important: Next Rate Announcement scheduled for January 28, 2025.

Supply of Homes

Supply has grown modestly in December 2025. New listings rose by 1.8% year-over-year, providing more options for buyers. Active listings are up by 17.5%, meaning more homes are available at any given time compared to last year.

This increase in inventory has created a competitive environment for sellers. Simply listing a home is no longer enough, sellers must price competitively and present their properties well to attract buyers.

Detached homes had an average price of about $1.3 million in December, down from $1.45 million in November. Semi-detached and townhouses also saw slight price reductions. The townhouse segment, however, showed resilience with prices around $862,000 despite a year-over-year decline.

Have any Questions: Ask us how to maximize your home’s value and showcase it to stand out in today’s market!

Market Outlook

So, how is the Toronto real estate market shaping up as we enter 2026? The picture is one of neutral stability. The market is neither overheating nor in deep decline. Affordability is improving thanks to stable interest rates, and buyers benefit from increased inventory and greater negotiating power.

Sellers who invest effort into preparing their homes and price realistically can still find success.

The key takeaway is a Toronto Real Estate Market that has calmed and settled into a balanced state, offering advantages to both buyers and sellers who are informed and patient.

Key Takeaways

• GTA housing sales December 2025: 3,697 (-8.9% YoY)
• New listings: 5,299 (+1.8% YoY)
• Active listings: +17.5% YoY
• Average home price Toronto 2025 (December): $1,006,735 (-5.1% YoY)
• Days on market: 65 (up from 56 in November)
• Interest rate: Stable at 2.25%