The Toronto housing market continued to cool in April, with home prices falling as buyers gained more leverage amid sluggish demand. The average selling price across the region dropped by 4% compared to the same time last year, landing at around $1.1 million. Despite a slight month-over-month uptick in sales of 1.8%, the market remains far below last year’s activity, with total home sales down 23% annually. This marks one of the weakest Aprils for sales since 2010, excluding the pandemic-affected spring of 2020.

The increase in available listings—up 8.1% year-over-year to nearly 19,000—has outpaced the number of homes sold, pushing the sales-to-new-listings ratio to just under 30%. This shift highlights a buyers’ market, where supply exceeds demand, and purchasers have more options and bargaining power. Prices, which had been relatively steady in recent months, are now facing clearer downward pressure as sellers become more flexible in negotiations.

All property types saw notable price declines over the past year. Condominiums experienced the sharpest annual price drop at 6.8%, followed by detached homes (5.4%), semi-detached properties (4.1%), and townhouses (3.9%). Condos also led in terms of sales declines, with a steep 30% drop, while sales of detached and townhomes decreased by 21% and 23%, respectively.

Uncertainty around the broader economy and job security continues to weigh on buyer confidence. Many potential purchasers are hesitant to make major financial commitments without a clearer outlook. Although mortgage costs have eased slightly, hopes for deeper interest rate cuts were dampened when the Bank of Canada opted to keep rates unchanged in April.

Forecasts from TD Bank suggest that condo prices could fall between 15% and 20% from their peak in late 2023, with much of that decline occurring through 2025. While lower home prices and softer borrowing costs may improve affordability for some, the overall housing market is expected to remain subdued in the near term, as both buyers and sellers wait for more economic stability.