Toronto Homes Lingering Longer as Vendor Discounting Takes Hold

Toronto's real estate market is showing new signs of softness as homes linger longer on the market and an increasing number of vendors slash their list prices to get deals done. The latest figures from the Toronto Regional Real Estate Board (TRREB) reveal the average days on market for all property types in June hit 28-up sharply from 16 days last summer.

The shift comes at a time of heightened uncertainty for both buyers and sellers. With the Bank of Canada holding its benchmark interest rate at 4.25% following widespread speculation about a summer cut, would-be buyers remain cautious. Several prominent mortgage brokers on Bay Street told The Daily Toronto that higher borrowing costs and economic jitters have left even well-located listings struggling to draw offers at last year’s prices.

Neighbourhoods See Stark Shifts

Parts of the city long considered bulletproof are feeling the chill. In the Annex, a semi-detached home on Madison Avenue that would have sparked a bidding war in 2022 instead sat unsold for five weeks before the seller knocked $150,000 off the $2.1 million list price. Over in Leslieville, realtor stats show the typical days on market for condos rose to 35 in June, compared to 20 a year ago. Even well-appointed units near Queen Street East and Carlaw Avenue are seeing offers coming in 4-5% below list-even after asking prices have been trimmed.

Developers are taking note. Tridel, one of Toronto’s biggest condo builders, quietly started offering closing credits up to $20,000 at two downtown projects, including The Well on Front Street and Via Bloor in the St. James Town corridor. The move is aimed at reducing inventory before fall.

Discounts Become the Norm

TRREB’s latest report puts the city-wide "sale to list price" ratio at 96%-down from 101% last June. That means most homes are now selling at a discount to their asking price, a departure from the frantic covid-era market. Detached homes in Leaside, for example, are closing on average 5.8% under list, based on data compiled by Realosophy Realty. And the overall number of active listings city-wide hit 17,100 in June, a 40% jump compared to the same month last year.

For buyers, this is a marked improvement. "The balance of power is shifting. There are deals to be had for those ready to move," said a real estate agent who works the Riverdale and Playter Estates pockets. Still, the average sale price for a Toronto home remains high at $1.11 million, with condos averaging $706,000 downtown according to the latest Multiple Listing Service figures. But the negotiating room is notably wider, especially for stale listings.

What to Watch Next

Given the inventory build-up and stalling buyer demand, agents expect vendor discounting to remain common through the summer. Buyers searching in midtown may find more flexibility from sellers on Eglinton Avenue West or Davisville by countering with realistic offers. Meanwhile, would-be sellers are advised to set their expectations-and list prices-in line with new market realities.

The coming months will be critical for gauging whether this shift marks a temporary pause or a more prolonged reset in the city’s high-flying property market. Those tracking offer dates and price cuts in specific neighbourhoods-like Trinity Bellwoods or Scarborough’s Birch Cliff-are already seeing more opportunities to negotiate than at any point in the last three years. The bottom line for buyers and sellers: patience and flexibility are once again back in play on Toronto’s streets.