06/03/2026
Improved affordability has been a key factor driving activity this spring. Lower home prices compared to last year, combined with reduced borrowing costs, have made homeownership more attainable for many buyers who had been waiting on the sidelines.
The declining supply of homes available for purchase is contributing to tighter market conditions.
The trend was even more apparent compared to April, with home sales increasing 10% month-over-month while new listings declined slightly. This suggests that buyer demand is strengthening faster than new supply is entering the market.
While home prices remain lower than they were a year ago, signs of stabilization are emerging. The average GTA home sold for $1,069,700 in May, down 4.6% year-over-year. However, on a month to month basis, average prices edged higher compared to April.
The condominium market across the Greater Toronto Area continued to face downward pressure on prices as new unit completions added to available supply. Despite this, buyer confidence showed signs of improvement, with many purchasers returning to the market and driving condominium sales up by nearly 8% compared to the previous year. This increase in activity suggests that improving affordability and lower borrowing costs are beginning to attract buyers who had previously remained on the sidelines.
For buyers, today’s market still offers choice and negotiating power. For sellers, improving demand and declining inventory levels may create more favourable conditions as the year progresses.
