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Etobicoke and Toronto Real Estate Outlook 2026

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My Perspective, Instinct and Strategy for 2026

Happy New Year! 🎉
 
There’s something energizing about the start of a new year—new beginnings, fresh momentum and the chance to start a new chapter and turn a few pages. 2025 is officially behind us and I know a lot of people are happy about that! I do feel like 2026 is already moving fast (how are we already a couple of weeks in?!). That forward motion is showing up everywhere, including in real estate, where early signs are starting to take shape and set the tone for the months ahead.
 
Before I give you my take on this year and what I am seeing so far, let’s talk about how 2025 ended as we take a look at the numbers for Etobicoke and Toronto.

How did 2025 end

GTA REALTORS® reported 62,433 home sales through TRREB’s MLS® System for the year 2025. This is down by 11.2% compared to 2024. New listings amounted to 186,753 up by 10.1% year-over-year. The annual average selling price in 2025 was $1,067,968 – down by 4.7% compared to $1,120,241 in 2024. 
 

What happened in December

In the month of December, there were 3,697 home sales reported – down by 8.9% compared to December 2024. New listings entered into the MLS® System amounted to 5,299 – up by 1.8% year-over-year.
 
“The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower. Improved affordability has set the market up for recovery. Once households are convinced that the economy and labour market are on a solid footing, sales will increase as pent-up demand is satisfied,” said Toronto Regional Real Estate Board (TRREB) President Daniel Steinfeld.
“Reaffirmed trade relationships and large-scale domestic economic development projects will be key for improved home sales moving forward. GTA households must be confident in their employment situation before committing to long-term monthly mortgage payments, even in this more affordable market,” said TRREB Chief Information Officer Jason Mercer.
 
In my opinion we also saw a normal seasonal December. I would not take too much stock in the decreases. The sentiment from a lot of buyers and sellers was a focus away from real estate in December and to refocus again in 2026.  

What does this mean for Buyers

With improved affordability and healthy inventory levels we are currently in a stable market here in Etobicoke and Toronto. What’s especially telling is buyer behaviour. Serious buyers are already out looking and ready to act—showings in my office alone have more than doubled in the past week compared to the previous three weeks. This tells me buyers are focused on real estate right now and paying close attention to new inventory coming to market. There’s also an element of pent-up demand, as many buyers have grown familiar with last year’s inventory and eager for fresh opportunities. Buyers often tell me they want a deal—this is your window to negotiate one.

What does this mean for Sellers

Buyers who are out looking to buy homes in Etobicoke and Toronto are still attracted to well priced homes that are positioned to show exemplary features and great value. Your home needs to stand out with what I like to call the “Wow” factor especially with the increase in inventory. It is imperative to showcase your home to stand above the competition with a strategy which includes “preparing it for sale”. A lot of sellers are thinking the same way right now and planning to list their homes for sale in the spring. To have an advantage, plan to get your home on the market sooner. My guess is we will probably see an influx of homes for sale in the “spring market”. Prices may dip again as buyers have more homes to choose from and negotiate the best terms with the most motivated sellers.   

Real Estate in 2026

I think real estate sales will increase overall in 2026 and prices will remain stable. There is an optimistic tone due to lower borrowing costs and improved affordability. 
 
However some areas move quicker than others. It all depends on the market you are looking to buy or sell in. Understanding days on market by area matters more than most people realize.

Thinking about making a move to Etobicoke?

If you have been thinking about buying or selling your home in Etobicoke let me know. We can discuss the best strategy for selling or buying your home.
 
When you plan now you create flexibility with timing, negotiations and options most people don’t realize they have. Interested in what that means for you? 
Let’s chat! 

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