January 2026
Dear Friend,
3,697 homes sold in December, bringing the years total to 62,433homes, 2/3 of what they should be in a normal market. One of the major drivers of the real estate market is confidence in the economy and confidence in the future. Unfortunately, 2024 and 2025 have been plagued with uncertainty. The US leadership, the economy, higher borrowing rates and of course, the crises in the Middle East and the Ukraine. All of these factors led to a lack of confidence and buyers decided not to decide and fewer homes sold than in previous years.
The average price on the Toronto Real Estate Board in 2025 was 1,067,968, down 4.7% from 2024’s average price of $1,120,241. A small decrease, really impacted by more affordable homes selling rather than prices dropping. The stability of the average price is an indication of the strength of the real estate market, and as demand increases so will the average price.
As we enter 2026, there has been a big improvement in the US economy, and that generally means that our economy will improve as well. I am confident that we will be able to work out a fair trade agreement with the US and that will build more confidence in the future as well.
There is a lot of pent-up demand for homes and I believe 2026 will be our year of recovery as home buyers feel confident about the economy and the future.
Many buyers start looking for homes in the spring, so the next 2-3 months will be an excellent time to invest in real estate, either to upgrade your home or to purchase an investment property. Start off by giving me a call. I will be happy to sit and chat and let you know the opportunities in the market.
Have a great January,
Your friend in Real Estate
If you know of a friend or relative looking to buy or sell, please let me know, I will take extra good care of them!
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