Grey clouds hang over Toronto real estate, but some see a silver lining

In a space that’s usually cheery and celebratory, the current downturn in the real estate market gives pause. It’s hard to be a sunshiny Pollyanna when there are storm clouds over the heads of homebuyers and home builders, and learning to pivot has become a necessity rather than a novelty.

The Toronto Region Real Estate Board’s December, 2025 “Market Watch” was particularly discouraging. Home sales were down by 11.2 per cent compared to 2024, and the average house price was $1,067,968, down from $1,120,241. Royal Bank reported an even bleaker outlook on housing starts: Ontario has been in a “steep decline since mid-2024” with high development and construction costs listed as “major barriers,” and, in the Greater Toronto Area specifically, municipal development charges that “make it exceedingly difficult to bring new housing projects to market at prices prospective buyers can afford.”