We receive many questions from buyers asking what will happen to the Greater Toronto real estate market in 2026. While no one truly knows the future, given global economic uncertainty and political tensions at home, we can look at what happened in 2025 to identify patterns.

What we’re seeing is that the numbers are starting to look better, but for most people, it still feels unsafe to buy. And this is because 2025 created a split market in people’s minds.

The market was easier on buyers, but psychologically, they’re still at low confidence levels. RE/MAX Team Paliwal believes that the opportunity in 2026 isn’t “timing the bottom.” It’s about understanding the gap between math and emotion, because most people are still making decisions with outdated assumptions from 2021 – 2023.

We know that you’re hearing a lot of people in the media saying that the market has ‘adjusted,’ but what does that actually mean? Let’s talk about the four things that changed in 2025 that we found interesting.

Do you know what you need to become a first time home buyer? In this guide we go in great detail so you can purchase your first home!

Prices have dropped substantially from peak levels, and mortgage rates have gone down from their highs as well. According to the Toronto Regional Real Estate Board’s (TRREB) 2025 Year In Review, affordability has improved using a payment-based measure (share of income dedicated to mortgage principal and interest dropped from the 2023-2024 peak period into 2025). In plain English, even if a home is still expensive, the monthly payments are easier to carry compared to when prices were high and rates were at their worst.

Active listings and months of inventory increased across all property types. We’re not simply saying that “more listings are good.” The fact is, when there are more options and homes take longer to sell, buyers don’t have to decide in 24 hours, don’t have to overbid just to win, and can walk away without losing the only home they’ll see for two months. This is what we mean when we say that risk has shifted away from buyers.

TRREB’s report shows clear pent-up demand building when you compare expected sales (based on employed population) versus actual sales. This tells us that people still need housing, but they delayed acting. When demand exists but hesitates while listings build, sellers lose control over terms and timing. This didn’t happen to every seller or every segment, but the market overall showed signs of this shift.