The Greater Toronto Area (GTA) real estate market has entered 2026 with a distinct shift in energy. After a period of high interest rates and cautious movement, we are seeing a “reset” in expectations. Here is the breakdown of what is currently shaping the market:
1. Inventory is Growing (and Staying)
One of the biggest stories this year is the rise in active listings. Unlike the “bidding war” era of years past, properties are sitting on the market longer—averaging around 40 to 45 days. This gives buyers something they haven’t had in years: time to think and room to negotiate.
2. The “Sideways” Price Trend
While some feared a massive crash, the GTA has instead moved “sideways.” Prices for detached homes remain stable, but the condo segment—particularly micro-condos—is seeing more downward pressure. This is a result of high supply meeting a more selective group of investors and first-time buyers.
3. Increased Buyer Leverage
The current market favors the prepared. We are seeing a return of conditional offers. Financing and home inspection conditions, which were almost extinct two years ago, are now the standard once again.
The Bottom Line for Lending with Lima Clients: If you’ve been waiting for a “calmer” market to enter, 2026 is providing that opportunity. However, with mortgage renewals still a factor for many homeowners, navigating the right product is more important than ever.