Toronto Real Estate Prices Fall Below $1M, Sales At 90s Crash Levels

Toronto’s housing market has taken a sharp turn, with the price of a typical home in the city dropping below the $1 million mark. According to the Toronto Regional Real Estate Board, the benchmark price for all homes in the Greater Toronto Area is now just over $1 million, but within the city itself it has fallen to $985,400—nearly a 4.5% drop compared with a year ago. This is the first time in years that homes in Toronto have been priced this low, marking a major shift in a market long considered almost invincible.

Sales have also fallen dramatically. In April, only about 5,600 homes were sold across the Greater Toronto Area—a decline of around 23% compared to last year. This level of sales activity hasn’t been seen since the late 1990s, a time known for a major downturn in the housing market. The sharp fall in sales highlights just how much buyers have pulled back.

At the same time, there are more homes on the market than in recent memory. Active listings at the end of April reached around 27,400 homes, which is the highest level for that month in more than 15 years. With so many homes available and fewer buyers, prices are under pressure and sellers are struggling to find buyers at their asking prices.

Economists point to multiple reasons for the slump. One is increased inventory—more sellers are listing homes, leading to a surplus. Another factor is economic uncertainty, including concerns over trade tensions and a weak job market. In Toronto, unemployment has climbed to about 8%, and some young workers are moving away in search of jobs elsewhere.

The imbalance is clear: for every new listing, fewer than three in ten homes are selling—this ratio, known as the sales-to-new-listings ratio, has dropped to around 29.7%. A number this low means it’s a buyer’s market, with sellers forced to lower prices sharply just to attract interest. That’s a stark contrast to earlier when homes were snapped up quickly, often above asking price.

Some experts warn that recovery isn’t likely to come quickly. Beyond weak job numbers and renewed trade worries, a lack of strong buyer demand continues. The rise in listings means the oversupply may take many more months—or even years—to clear. For now, Toronto’s housing market is at a clear crossroads, with prices testing levels not seen in decades.