Author: Alireza Moghaddam

August 2026 marked another shift in the Greater Toronto Area real estate landscape, with the average home price dipping below $1 million once again. Sales activity eased by 2.1%, and prices saw a 2.7% decrease. Detached homes averaged $1.29M, semis came in at $932K, townhouses at $787K, and condos at $618K. Notably, new listings dropped by 14.1%. Having guided clients through more than 450 transactions, I’ve seen how market movements like these can create both challenges and opportunities. As someone who values integrity and results, I focus on helping clients navigate these numbers with clarity and confidence. If you’re considering your next move—whether buying or selling—it’s essential to have a clear strategy tailored to current conditions.

Micro condos under 500 sq ft in the Greater Toronto Area have seen a 12.2% value decline from 2020 to 2025, losing value at twice the rate of larger units. In 2025, they dropped $152 per sq ft year-on-year. Larger condos (500-700 sq ft) fell 6.2%, while Vancouver's micro condos gained 4.9%. Reduced investor demand and preference for larger homes contribute to the GTA micro condo market downturn.

Toronto has just introduced an AI-powered Building Permit Application Pre-Check system in partnership with Clariti, aiming to accelerate the approval process for residential building permits. This technology provides instant feedback on missing documents and code compliance issues, removing common roadblocks and helping to streamline the path to approval. As the city sets its sights on 285,000 new homes by 2031, these kinds of innovations are crucial for meeting ambitious housing targets and supporting growth. With a background in both real estate and engineering, I appreciate the impact that efficient permitting can have on the market and on clients’ ability to move forward confidently with their plans. Staying ahead of these developments is part of my commitment to providing informed guidance in every transaction.

The recent surge in new home sales across Ontario is a clear indicator of how policy shifts can impact our market. In Q2 2026, sales of new homes jumped by 130%, reaching 8,410 units. This was largely fueled by the enhanced HST rebate, now up to $130,000—a significant incentive for buyers of single-family homes in the GTA. While this momentum hasn’t yet translated to the condo sector, the broader effects are substantial: 17,300 construction jobs supported, $2.8B in GDP preserved, and $1.4B in government revenue maintained. As someone who’s closely tracked market trends and guided clients through more than 450 transactions, I’ve seen how these shifts can open new possibilities for buyers and sellers alike. Staying informed about these developments is crucial for making confident, strategic real estate decisions.

Home sales in the Greater Toronto Area have increased for the fourth consecutive month, boosting national real estate projections despite ongoing challenges in the condominium market. Recovery is driven by reduced buyer uncertainty, improved financing, and expectations of economic stability. Single-family homes show gradual improvement, while condos face oversupply and cautious demand. Market balance favors buyers, with sellers needing competitive pricing.

Homes in Alderwood, Etobicoke, sold fastest in the GTA in July, averaging 10 days on the market, while Chaplin Estates in Old Toronto had the slowest sales at 77 days. Established, family-friendly neighborhoods with good transit and schools saw quicker sales, especially single-family homes. Other fast-selling areas included Palmer, Uptown Ajax, and Dovercourt Park. Buyer interest in the GTA declined slightly, with many first-time buyers.