Toronto Sellers Forced to Wait Longer and Drop Prices as Listings Linger

This summer, Toronto homeowners looking to cash out are facing an uncomfortable reality: properties are sitting longer on the market, and more sellers are trimming their asking prices to get deals done.

The shift comes at a sensitive moment. Rising mortgage rates over the past 18 months have kept buyers cautious, but high immigration is still supporting demand and pushing up rents. While new listings across the city are up 14% from July 2025, buyers in areas like Leaside and CityPlace are taking their time-and, increasingly, asking for deals. For those banking on a quick, lucrative exit, the market's changed tempo may come as a surprise.

Longer Waits, Bigger Discounts

According to the Toronto Regional Real Estate Board (TRREB), the average days on market for a detached home city-wide hit 31 days in June 2026, up from just 18 days a year earlier. Data from the Junction and Riverside neighbourhoods show similar trends: a mid-rise, two-bedroom on Bloor Street West recently languished for 41 days before closing, compared to just over two weeks last summer. Across downtown condos, average days on market now hover at 28-a dramatic increase from the 16-day average seen in January 2025.

Seller discounts have also widened. The average sale price is now just 95.8% of the initial list price, a level not seen since early 2023, according to TRREB’s latest quarterly review. In the high-demand pockets of the Annex, that gap has grown even further: Urbanation, a local analytics firm, tracked a 6% average drop from list in May and June, with many sellers settling for amounts below recent comparables. "The new reality is that only move-in-ready, well-priced properties are selling quickly," one veteran agent at Chestnut Park Realty said. "Buyers now have the upper hand, especially for condos or homes needing work."

What Buyers and Sellers Should Expect Next

Industry watchers point to the next Bank of Canada rate announcement on July 24 as a key factor-should rates nudge lower, sidelined buyers may return, but if conditions hold, more price cuts could be in store. For anyone actively selling, the advice is clear: expect negotiations. Sellers who price too high risk being left behind, particularly in neighbourhoods like Scarborough’s Birch Cliff, where detached homes are sometimes taking 40 days or longer to attract a single offer.

On the flip side, buyers who can tolerate rising taxes and mortgage costs are finding room to negotiate for the first time in years. Century 21’s July data shows 60% of freehold homes along Danforth Avenue sold for under-asking last month. As Toronto heads into the heart of summer, the days of listing on Thursday and selling above asking on Monday appear-at least for now-to be on hold.