Walk into an open house in Toronto’s High Park–Swansea neighborhood on a Sunday afternoon, and the difference from recent years is clear. Two years ago, buyers lined up before the doors opened. Now, three showings over a weekend is typical, and many homes sit for weeks without a single offer.
Toronto and the surrounding GTA now have more homes for sale than at any point in recent memory, but not all properties are moving. Condos linger on the market. Detached homes that once drew bidding wars are seeing price cuts. Yet some properties — especially those under $400,000 or with updated kitchens — still sell within days.
“It’s a completely different market right now,” says Roopali Rajpal, a broker with Sutton Group Realty Systems who works across Toronto, Oakville, Mississauga, and Burlington. “We have supplies. It’s more tilted in favor of buyers — but not everything is selling at the same pace.”
Why the Market Feels Different
The slowdown has been developing for months. Interest rates have fallen from their 2023 highs and remain steady, bringing some buyers back into the market. At the same time, inventory has climbed — especially in the condo sector, where assignment sales and resale units have flooded listings.
Homes that sold for over $2 million in High Park–Swansea a few years ago are now listed at $1.4 million or $1.5 million. Sellers have already priced in the market correction, but many buyers are still holding back, hoping prices will drop further. Rajpal notes that buyers expect deep discounts, not realizing that current prices already reflect the downturn.
Mortgage renewals are also driving some homeowners to sell. Those who locked in five-year fixed rates in 2020 now face much higher payments, even with recent rate drops. For some, selling is the only way to avoid unaffordable monthly costs.
What Sells Fast
Despite the overall slowdown, some segments remain competitive:
Condos under $400,000 – First-time buyers are moving quickly on these, especially in areas with good transit access. Well-priced units in this range often get multiple showings and offers within the first week.
Homes with updated kitchens – Move-in ready kitchens with quartz counters and new appliances are a top priority. Buyers will overlook smaller bedrooms or dated bathrooms if the kitchen is modern.
Assignments near completion – Pre-construction condos nearing occupancy attract investors and buyers seeking to avoid the risks of new projects. Many are now priced below their original purchase price, as sellers walk away from deposits rather than cover the difference between contract price and current value.
What’s Sitting on the Market
Some properties are seeing little interest, even after price reductions:
Outdated bathrooms – Cosmetic updates matter more than ever. Homes with pink tile or dated fixtures quickly turn off buyers who have plenty of options.
Small condos – Studios and one-bedroom units are oversupplied. Demand is strongest for two- and three-bedroom condos, but there aren’t enough of them. As a result, smaller units stay on the market longer while larger ones sell faster.
Homes on busy streets – Even with price cuts, these properties attract few offers. With more inventory, buyers can afford to be selective, and location is a bigger factor when there’s no rush to bid.
The Assignment and Pre-Construction Crunch
One of the most dramatic changes is in the assignment market. Buyers who purchased pre-construction condos years ago are now confronting lower valuations as buildings near completion. The gap between the original contract price and today’s appraised value must be paid in cash, in addition to the deposit. Many buyers don’t have the funds, so they either forfeit their deposits or try to sell the assignment at a loss.
This has led to a spike in assignment listings, with many sellers motivated to make a deal. Rajpal sees “a lot of opportunities in that space” as higher supply and urgent sellers create room for negotiation.
At the same time, new construction has slowed to a crawl. Builders are holding off on launching new projects because buyers are wary of future price declines and financing challenges. This pause means today’s supply glut could become a shortage in a few years, especially for larger condo units.
For Buyers
For renters waiting for the “perfect” time to buy, market conditions suggest that moment is unlikely to arrive. Prices have stabilized, and while negotiation is possible, sellers have already lowered expectations. Rajpal encourages buyers to consider moving now, especially in the condo market, where inventory and bargaining power are at their highest in years. “Pay off your own mortgage instead of someone else’s,” he says.
For Sellers
For sellers, realistic pricing is essential. Overpricing leads to a stale listing, and the longer a home sits, the less interest it attracts. Offering credits for repairs or upgrades can help if the home isn’t fully updated, as buyers now expect move-in-ready features and have plenty of alternatives.
What’s Next for Toronto’s Market
Toronto’s real estate market has moved from a seller’s frenzy to a more balanced environment. Inventory is up, competition has cooled, and buyers have more room to negotiate — but only if a property is priced right and shows well. Many buyers are waiting for a market bottom, but by the time it’s clear, prices may already be rising again.
The current landscape rewards buyers who act decisively and sellers who adapt quickly. With new construction stalled and assignment sales rising, the market’s next turn may arrive sooner than expected.
This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.
