In Late-Q2 2026, Toronto saw one of the strongest affordability gains as falling home prices, not easier financing, became the main driver.
Toronto recorded a ~2.5-point affordability improvement after its representative home price fell ~4% during the quarter, leaving the payment-to-income ratio near 68%.
In Toronto, the shift from rate-driven to price-driven gains was especially clear, highlighting how softer prices recently improved buying conditions more than mortgage rates.
For Toronto buyers, mortgage rates were not expected to deliver much additional relief over the next year, making other affordability supports increasingly important.
In Toronto, further affordability improvement increasingly depended on income growth and restrained home-price appreciation, as financing costs were no longer expected to help.

CMHC expects Toronto sales to increase in 2026, even while prices remain below recent peaks.
Here’s the overlooked part: today’s abundant inventory could give patient buyers more choice and negotiating room.
Royal LePage expects GTA prices to decline 2% by Q4 2026, while activity continues building.
The bigger opportunity may be buying when competition is quiet—not perfectly predicting the market’s bottom.

In Early-Q3, Greater Toronto recorded ~6K home sales, ↓~1% yearly after four months of yearly gains, though activity still improved ↑~3% MoM.
Avg. selling price was ~$1M in Early-Q3, with the typical-home benchmark also ↓~5% yearly, showing buyers still held pricing leverage across much of Greater Toronto.
By housing type, detached sales edged ↑~1% yearly, while semi-detached sales ↓~6%, townhouses ↓~3%, and condo apartments were nearly flat in Early-Q3.
Supply tightened meaningfully: new listings fell to ~14.5K, ↓~18% yearly, while active listings reached ~26.1K, ↓~12%, reducing fresh options across Greater Toronto.
With sales taking a larger share of listings, the board said shrinking supply could gradually limit price negotiations and support balanced conditions if confidence improves.