Toronto Home Prices Climb 4.7% Over Last Year Despite Cooling Sales

Toronto’s housing market posted a 4.7% year-on-year price increase this spring, even as the pace of sales eased compared to last summer’s post-rate-hike frenzy. New data from the Toronto Regional Real Estate Board (TRREB) shows the city’s average home price reached $1.13 million by the end of June, up from just under $1.08 million in the same quarter of 2025.

Leaside and Leslieville Lead the Pack

The numbers underline the city’s ongoing housing crunch. This matters for buyers and renters alike, as tight supply and unflagging demand continue to drive up costs. The pressure is especially acute in family-friendly neighbourhoods and among younger buyers, many of whom see their options narrowing even with Bank of Canada rate cuts widely expected later this year.

Two areas saw some of the biggest gains. In Leaside, east of Bayview Avenue, the average detached home topped $2.3 million last quarter-a jump of nearly 8% over June 2025, according to TRREB’s local breakdown. In Leslieville, east of downtown, restored semis on streets like Logan Avenue are fetching more than $1.6 million, up nearly $100,000 year-over-year. Both neighbourhoods are drawing young families priced out of the Annex and Summerhill, but competition is fierce: houses routinely draw double-digit offers, with many closing for well over list.

Downtown condo prices are more subdued by comparison, averaging $715,000-roughly flat compared to last June. Agents report continued brisk investor activity around King Street West and CityPlace. But listings for one-bedroom units on Queen’s Quay are lingering as interest rates keep first-time buyers cautious.

Immigration Keeps the Market Hot

The city’s growth remains turbocharged by immigration, with nearly 160,000 new permanent residents projected in the GTA this year. That’s sustaining demand even as some local buyers take a wait-and-see approach ahead of anticipated rate cuts later in 2026. Toronto Metropolitan University’s Centre for Urban Research found that the city added more than 17,000 households last quarter alone-piling more pressure on the rental market, where purpose-built units along Eglinton Avenue East are renting for upwards of $2,650 a month, a 6% jump from June 2025.

TRREB’s sales figures paint a nuanced picture. While total home sales were actually down 5% over the same quarter last year-driven by a dip in detached house activity-prices held firm and even rose in sought-after pockets. Inventory across the 416 stood at just 1.8 months as of June, leaving buyers with few options, especially north of Bloor Street.

For those eyeing a move or their first purchase, brokers say timing remains key. With the city’s new multiplex zoning rules in the Danforth and Junction Triangle only recently coming into effect, experts expect more infill developments to hit the market in the next six months. Still, supply won’t catch up overnight. If you’re looking to buy, setting alerts early for newly listed homes in Midtown or on the east side could prove crucial before another round of price gains arrives this fall.