Toronto home prices fell 2.7% year-over-year but experts see recovery signs in second half

Toronto's aggregate home price declined 2.7 per cent year-over-year in the second quarter of 2026, reaching $1,120,800, though brokers say the market is showing early signs of stabilization.

The Greater Toronto Area recorded a steeper 4.6 per cent annual decline, with detached homes down 3.6 per cent to $1,396,500 and condominiums down 5.7 per cent to $660,000. Within the city proper, detached homes dropped 9.8 per cent to $1,515,000 while condos slipped 2.5 per cent to $658,600.

But the picture brightens when comparing quarter to quarter. Royal LePage's latest House Price Survey noted that prices showed stabilization on a quarterly basis, suggesting the worst of the decline may have passed.

Shawn Zigelstein, broker and leader of Team Zold at Royal LePage Signature Realty, said month-over-month activity levels have improved and declining new listings are helping push prices upward. The condo market has shown particularly encouraging signs, with sales slightly higher than the same period last year. "After a slow start to the year, we are finally starting to see a turnaround in the GTA market," Zigelstein said.

Economic uncertainty and geopolitical tensions continue to keep some buyers on the sidelines, and many sellers are only listing homes when necessary, contributing to lower inventory. Royal LePage is forecasting a two per cent price decline in the fourth quarter of 2026 compared with the same period last year.