In the past several months, I have had quite a few clients ask me where I think the real estate market is heading in 2026.
Having worked in the real estate industry for over 40 years, I’ve seen many different markets and cycles. 22% Mortgage rates in 1980. The impact of COVID. And now, all that is unfolding globally. I listened to what the politicos had to say at the World Economic Summit in Davos, and I must say, although I’ve been around for a while, this is about as chaotic as I have ever seen the world.
The good news I believe, is that all this too will change. My experience continues to shape how I advise clients, with a focus on thoughtful decision-making and long-term perspective.
Today’s Market in Context
My expertise is in the Toronto real estate market and there is certainly a fair bit of doom and gloom about it. Media reports of New Residential Construction collapsing in Ontario. Starts on new Condo projects at the lowest point in 34 years & Toronto Condo sales falling 60% in 2025 with only 1600 units sold – the lowest since 1991. Toronto City Council’s decision to raise the municipal tax on homes priced at $3M + hasn’t helped either.
All this information has an impact on seller & buyer behaviour, but what has been consistent throughout my experience is that people still have a need to buy and sell real estate. Promotions, Relocations, Divorces, Deaths, Upsizing, Downsizing – all may require a real estate transaction – regardless of market conditions. In my 40 years, I have sold property when the market was red hot and freezing cold. When interest rates were 22% and when they were at 3%.
Experience Matters
Market conditions now are a far cry from just a few years ago, when people were lining up to buy property and houses sold in a week.
Real estate agents play an important part in the process, but we don’t control the market. We help clients interpret it and respond so they can make an informed decision when buying or selling. Through the Multiple Listing System, we market our clients’ properties, providing exposure to the largest possible audience. And when an offer is procured, we act as effective negotiators to advocate in the best interest of our client.
Make the Market Work For You
So, when people ask me where I think the real estate market is heading in 2026, my answer is that real estate markets are cyclical. They always have been. So, if it’s the right time in your personal circumstances to buy and sell, then ignore the noise, work with an experienced realtor, and do what is right for you.
2026 will continue to offer extraordinary opportunities for buyers – particularly in the condo market, where condos are selling at a huge discount.
When it comes to selling, part of the challenge in a transitional market is understanding the importance of pricing with commitment, not hope. Property owners are able to sell in ANY market, but only at a price that the market will support. Not what their neighbour sold for at the height of the market. Overpricing isn’t a power move: it’s a risk.
Today’s buyers are informed, fast-moving, and quick to pass on homes that feel misaligned with market value. Find out how you can sell successfully in the current market.
