CondosMarket

Canada Fee Cuts Could Unlock Supply
Development fees are a key factor shaping Toronto’s housing supply. According to a recent national housing agency report, reducing these fees could make nearly 14% more residential projects viable across Canada. In Toronto, the impact could be especially significant—eliminating these charges could bring about 10% more projects to life, potentially covering half of the city’s stated supply needs. For context, development fees in Calgary for a one-bedroom high-rise are around $4,000, while a detached home sits near $9,000. Compare that to Vancouver, where fees for similar homes range from $20,000 to $33,000. Of course, these fees fund vital infrastructure like roads and sewers, so the agency’s economist notes that a zero-fee scenario isn’t realistic. Still, lowering fees for family-sized homes could help ease the supply crunch in Toronto, where new larger units often outpace the price of comparable resale homes—making it tough for families to find the right fit. As someone who guides clients through Toronto’s complex real estate market, I see firsthand how these costs shape both inventory and affordability.

Toronto Area Home Prices Dip Below $1 Million
Toronto home prices just dipped below the $1 million mark, with the average sale now around $993K—about 3% less than last year. For many buyers, this creates a window of improved affordability, though the landscape is shifting. New listings have dropped roughly 14% year-over-year to just over 12,000, meaning inventory is tighter and there’s less selection for buyers. REALTORS® in our area recorded just over 5,000 sales, down about 2% from the same period last year. While steady mortgage rates and encouraging economic news are helping with affordability, concerns about trade and the potential for higher inflation and borrowing costs are giving some buyers pause. If inventory continues to shrink and prices edge up, we could see more urgency from buyers—and potentially more sellers entering the market as conditions improve. As someone who specializes in Toronto homes and property evaluations, I’m always keeping an eye on these shifts to help you navigate your next move.

Canada: Rate Cuts Can Worsen Affordability
A recent study from central bank researchers offers an interesting perspective on how interest rate cuts impact housing affordability in Canada. Lower rates tend to spark a quick uptick in homebuyer demand—resales can rise almost immediately, with the strongest effects seen 18 to 24 months after cuts. But here’s the catch: new housing supply, especially for condos and multi-unit homes, takes about two years before we see meaningful growth. This lag happens because builders need time for planning and permits, even though improved prices and cheaper financing eventually make projects more feasible. Strong labour markets also fuel this cycle, as buyers feel more confident and lending becomes easier. The researchers conclude that while rate cuts eventually help add supply, the initial surge in demand actually puts more pressure on affordability. Monetary policy alone isn’t the solution. As someone who evaluates homes and keeps a close eye on Toronto’s market dynamics, I see firsthand how these trends play out for both buyers and sellers.

Toronto Home Prices Offer More Affordable Options Again
August 2026 brought another shift in the GTA real estate landscape, with the average home price dipping below $1 million for only the second time this year. Detached homes came in at $1.29M, semis at $932K, townhouses at $787K, and condos averaged $618K. Sales activity was also down 2.1%, and prices dipped 2.7%, while new listings decreased by 14.1%. Having guided clients through Toronto’s changing market for years, I know how important it is to have accurate property evaluations and a clear understanding of current trends—whether you’re buying, selling, or simply keeping an eye on what’s next.

Larger Toronto Condos Hold Value Better Than Smaller Units
As someone who closely follows Toronto’s condo market, I’ve noticed an interesting trend: micro condos (those under 500 sq ft) in the GTA have seen their values drop by 12.2% between 2020 and 2025. That’s twice the rate of larger condos, which only declined by 6.2% in the same period. Meanwhile, Vancouver’s micro condos actually increased by 4.9%. Understanding these shifts is key when evaluating property options or considering your next move in Toronto. With experience in both condos and comprehensive property evaluation, I keep a close eye on how each segment of the market is evolving—because every square foot counts.

Canada’s Affordability Streak Hits 10 Quarters
We’ve now seen 10 consecutive quarters where affordability has remained a central issue across Canada’s real estate landscape. As mortgage rate relief becomes less likely to drive any improvements, the focus naturally shifts to home prices and income growth. For those of us working in Toronto, this rings especially true—our market dynamics are distinct, and what’s happening here can be very different from cities like Calgary, Edmonton, or even Vancouver. Economists anticipate that mortgage rates will hold steady or might even tick up over the next year, so the path to better affordability will depend on whether home prices moderate and household incomes continue to rise. Slower population growth is expected to ease housing demand, which could help stabilize prices, while a stronger labour market should offer some support for household budgets. As someone who specializes in Toronto real estate—whether it’s houses, condos, or providing property evaluations—I see firsthand how these broader trends play out on a very local level. Affordability gains are possible, but they’ll require a careful watch on both prices and incomes moving forward.

Ontario Tax Relief Spurs New Homes
Ontario’s latest tax relief measures are having a visible impact on the province’s housing landscape. With taxes and government charges accounting for around 36% of a new home’s total price, it’s clear just how much buyers have been affected by costs beyond the actual build. In many Ontario municipalities, development charges alone reached over $100,000 per single-family home—and when you add in other levies, some buyers faced up to $200,000 in extra costs.

A new joint effort by federal and provincial governments has given municipalities access to funding, provided they reduce residential development charges by 30%–50% (or more) and keep those cuts for three years. Following the HST cut, Ontario saw 8,400 new home sales in just three months, compared to only 3,600 in the same period each year previously.

As someone who evaluates Toronto homes daily, I see firsthand how these changes could make a real difference for buyers, builders, and our communities. Making the HST rebate and lower development charges permanent could bring the predictability we need to improve affordability and boost housing supply—something everyone in Toronto’s real estate market is watching closely.