Whether you are a first-time buyer or looking to upgrade your current home, understanding Toronto’s real estate market can give you a head start. 

Our local market has seen dramatic changes in recent years. Just a decade ago, home prices were much lower and somewhat more affordable. Nowadays, the homes have become one of the most significant investments we make. Factors like population growth, economic shifts and global events ( COVID-19 pandemic) have had a great impact on home prices. Recently, we have seen a mix of high-demand periods, leading to a seller's market, and moments of slow-down, where buyers hold more negotiating power.

For more on Toronto’s market trends over the past few years, check out Market Trends Over the Last Decade.

When there are more buyers than homes available and the sellers seem to have the advantage, we find ourselves in what we call a "seller's market". Properties sell quickly, often with multiple offers, driving prices higher and it is essential to be prepared to make competitive offers. See our guide on Making Competitive Offers in a Seller's Market for more tips.

In a "Buyer’s Market", buyers hold the power because there are more properties available than people looking to buy. Sellers may be more open to negotiations and you could find more affordable options or get favourable terms. If you are in a buyer’s market, it is a great time to explore your options. Check out our Home-Buying Checklist for a Buyer’s Market to see how to maximize your advantage.

When the number of homes matches the number of buyers, prices tend to stabilize. This balanced scenario allows for more straightforward negotiations without the urgency often seen in a seller’s market.

Each market type has its advantages. Knowing which one you are in can help you navigate your purchase confidently. An experienced Realtor will be able to recognize the type of market or even hyper-local submarket and advise you accordingly.

Your budget is one of the most important factors in determining where and what type of property you can afford to purchase. Toronto has a variety of neighbourhoods, each offering different lifestyle amenities, commute times and property types. For example, if you have a high budget you may find opportunities for detached homes or other types of properties closer to downtown in neighbourhoods like Rosedale or Yorkville, where prices reflect both the prestige of location, proximity to public transit and highways and quality of life. 

With a moderate budget, you might look towards areas slightly outside the city core, like Scarborough, Etobicoke, or North York, where you can find lower price detached homes, semi-detached, townhouses and larger condos.

For a lower budget, condos or smaller townhomes in areas further from downtown  or in the outskirts of the city, in smaller communities like Pickering, Richmond Hill or Mississauga can offer more affordable options while still providing access to transit.

Curious about specific neighborhoods? We break down Toronto’s most popular areas in Choosing the Right Neighbourhood in Toronto.

Understanding Toronto’s real estate market is the first step in finding the perfect home. To continue learning, check out our other guides on topics like Preparing Financially for Homeownership and Finding the Right Realtor for Your Needs. And if you have questions, our team at is always here to help. Click here to connect with us!

Happy house hunting!