Toronto’s condo market is undergoing a major transformation, and investors are heading for the exit.

After a year of expected rate cuts, forecasters are starting to question how long Canada’s easing cycle will last—and whether rates might start rising again in 2026.

Once the country’s hottest real estate region, the Greater Toronto and Hamilton Area condo market hit a 35-year low this year, according to a new report by real estate research firm Urbanation.

The number of home sales recorded over Canadian MLS® Systems declined by 1.7% on a month-over-month basis in September 2025, ending a string of gains that began in April. That said, it was still the best month of September for sales since 2021.

The Royal Bank of Canada (RBC) has projected that the Bank of Canada (BoC) will deliver another 25 basis point rate cut in October, following its September move to restart the easing cycle.

Canada’s financial watchdog has sharpened its focus on two emerging threats - tariffs and housing market strains - amid ongoing uncertainty in the global and domestic economy.

Canada’s commercial real estate market weathered economic headwinds in Q3 2025, as investors doubled down on high-quality assets and signaled renewed optimism for the office sector, according to Avison Young’s latest cap rate report.

Home sales in the Greater Toronto Area (GTA) rose in September 2025, with 5,592 transactions reported — an 8.5% increase from a year earlier — as more buyers entered the market following the Bank of Canada’s interest rate cut, which lowered borrowing costs and made monthly mortgage payments more affordable. On a seasonally adjusted basis, sales also increased from August while new listings declined, indicating slightly tighter conditions in some market segments.

The weakening condo market in the Toronto region has some parallels to the crash of the early 1990s, but several factors mean the current downturn will likely be less severe, Canada’s housing agency said in a report out Wednesday.

Don't expect a big immediate jump in purchase activity, but experts suggest there's cause for cautious optimism

The Bank of Canada has reduced its benchmark rate by 25 basis points, moving back into rate-cutting mode amid signs of a weakening economy and sluggish labour market.

The number of home sales recorded over Canadian MLS® Systems edged up 1.1% on a month-over-month basis in August 2025. It was the best month of August for sales since 2021, and the fifth straight monthly increase in activity, making for a cumulative 12.5% since March.

Economists and markets are expecting the Bank of Canada to cut its policy rate by a quarter point on Wednesday, barring any major surprises in the inflation data set to be released the day before.

A new MPC–Pollara survey shows growing concern about fraud in the housing market, and strong support for CRA-led income verification

The Bank of Nova Scotia and the Bank of Montral have both changed their forecast for the upcoming Bank of Canada interest rate decision set to be announced on September 17.

Greater Toronto Area (GTA) REALTORS® reported 5,211 home sales through TRREB’s MLS® System in August 2025 – up by 2.3 per cent compared to August 2024.

Investors are eyeing one sector despite a sharp drop in activity

Population, monetary policy among factors giving office and retail assets in Canada better growth potential

Ontario’s housing minister is acknowledging that new home construction in the province is at a “standstill,” potentially derailing the Ford government’s pledge to build 1.5 million homes by 2031.

Fresh signs from inflation and trade could soon alter the path for interest rates in Canada