As someone deeply invested in Toronto’s real estate landscape, I’m always watching the market’s movements and what they mean for buyers and sellers. A recent global wealth manager’s report placed Toronto among the weakest major housing markets, highlighting a significant ~11% yearly drop in home prices—the largest decline among 23 cities studied. From 2014 to 2022, our city saw real home prices double, fueled by rapid population growth, strong investor demand, and robust construction. But since 2022, with higher interest rates, a foreign-buyer ban, and increased supply, we’ve experienced a sharp correction—prices are now nearly 30% below their peak. This has put Toronto in the moderate bubble-risk category, as the correction has helped bring prices closer to what local residents can realistically afford. Looking ahead, the outlook suggests ongoing downward pressure on prices, given rising inventory, slower growth, and the potential for further rate hikes, which is causing many buyers to hesitate. As your dedicated partner in real estate and home inspection, I keep a close eye on these shifts so you can make informed decisions with confidence.