Real Estate Market Expectations 

The real-estate market is showing slow signs of uneven, recovery. Increased supply (homes for sale) in mid to late 2025 with a potential rebound in overall economic activity in 2026-2027.

The overall market remains under pressure from high inventory pressure, especially in the condominium sector which has seen a major fall off across the GTA with sales below the historical average. A recovery will depend on factors like economic fundamentals and policies, mortgage rates declining, and consumer confidence increasing. The progress is expected to be slow, and gradual with certain property types recovering quicker then others. 

Factors Limiting Recovery

• Economic Fundamentals and Global Events: Foreign trade risks, no clear direction in the Canadian market for outside investments, and immigration/migration policies are all leading to economic uncertainty.
• High Inventory And Low Sales: Abundant supply in houses for sale, are creating depressing values. 
• Uneven Conditions: Certain types of properties will recover quicker depending on the demand of buyers. Example: Most homeowners strive for a detached home, with condos being a last resort. As the market improves, buyers will opt-in for a detached home first, increasing the value with demand. Condos will follow suite once detached homes become unaffordable for the average homeowner. 
• Market Affordability: Most Canadians simply cannot afford the cost of housing across the GTA when factoring in inflation on the cost of goods.

What To Expect?

• Gradual Rebound: Market conditions are expected to improve in 2026 to 2027, with a slow rebound on the horizon as economic factors improve and mortgage rates decrease. 
• Value Driven: Expect to see a shift in focus from buyers. They are becoming more value driven and looking for more affordable options.
• Price Softening: Prices will continue to decrease due to high inventory in the interim.