In March, 5,011 homes were sold through the TRREB MLS® system—a 23.1% decline compared to the same time last year. On a seasonally adjusted basis, sales also dipped below February’s numbers, further reflecting a market in pause mode. However, the supply side told a different story: new listings surged 28.6% year-over-year to 17,263, giving buyers more choices across all property types.

In the rental market, conditions shifted noticeably. The vacancy rate rose to approximately 2.7%, and asking rents dropped for the fifth consecutive month—down 4.8% overall. One-bedroom units declined to an average of $1,850, reflecting a 2.4% annual decrease, while studio units in Toronto proper fell by 5–6%. As 39% of Ontario’s condos are currently owned by investors, many are reconsidering their positions, potentially leading to more units coming to market. This shift, coupled with declining rents and improved affordability, is opening a rare window of opportunity for first-time buyers who have long struggled to enter the housing market.

Looking ahead, market watchers are eyeing the Bank of Canada’s future interest rate announcements. Futher rate cuts should renew buyers’ confidence and quickly shift the pace of the market. Similar to the post-pandemic rebound, this delayed spring market may find its momentum in the months to come as economic conditions stabilize.

STRATEGIC INSIGHTS

For CONDO buyers, the combination of increased inventory and lower borrowing costs creates a strategic opportunity to make a move as the forecast is for an inventory shortage in 2026 and consequaently an increase in prices.

For LOW-RISE sellers,the strong demand suggest that listing soon—while demand still outpace supply —could lead to favorable outcomes as the market begins to thaw.

As fixed Income investors shifting away from GICs and other financial instruments there could be a substantial injection of capital into the real estate market.