One of the most interesting things happening in the Toronto real estate market right now isn’t showing up in the headlines.
It’s showing up in buyer behaviour.
Over the last few months, I’ve noticed a growing disconnect between what the market is doing and how many buyers are approaching it. Many buyers are still behaving like it’s January.
They’re browsing.
They’re waiting.
They’re assuming more inventory is coming.
They’re expecting every seller to be highly negotiable.
The problem? The market has quietly changed.
Not dramatically.
Not overnight.
But enough that buyers who haven’t adjusted their expectations may find themselves missing opportunities.
The Window Of Unlimited Choice Is Starting To Close
For much of the past year, buyers enjoyed something they hadn’t seen in a long time:
Options. Lots of them.
Inventory was plentiful.
Properties sat longer.
Negotiating power shifted toward buyers.
Many people became comfortable with the idea that if they didn’t like a property, another one would be available next week.
And for a while, that was true. Today, I’m not so sure.
Across Toronto, new listings are falling in almost every major housing segment.
Demand has remained relatively consistent.
Supply is shrinking.
And when supply shrinks, competition eventually follows.
Toronto Condos Are Quietly Improving
The condo market is probably the best example. For months, the narrative has been that condos are struggling.
But what I’m seeing on the ground is far more nuanced.
New condo listings were down 27% year over year in May.
Sales increased 9%.
Days on market have fallen from 56 days in January to just 26 days in May.
That doesn’t mean every condo is suddenly selling overnight. Far from it.
The condos succeeding right now are the ones that are responding to the market.
They’re priced properly.
They’re presented well.
They understand what today’s buyers actually value.
The condos sitting for months often have one thing in common:
They’re still trying to sell in yesterday’s market.
The Best Properties Are Moving Faster
One thing I’m noticing repeatedly with buyers is that many are still assuming they have unlimited time.
Back in January, that assumption often worked. Today, the strongest properties are attracting attention much more quickly.
Whether it’s a condo, detached home, or semi-detached property, buyers are competing aggressively when the right opportunity appears.
The result is that some buyers are spending months waiting for a better deal while the homes they actually wanted are being purchased by someone else.
The Biggest Shift Is Happening In Semi-Detached Homes
If there’s one segment that has my attention right now, it’s Toronto’s semi-detached and row home market.
Inventory is down 72% compared to last year. We’re sitting at less than two months of inventory.
That’s firmly seller’s market territory.
What’s interesting is that many buyers haven’t adjusted their expectations. I still hear people describe multiple offers as irrational or assume that paying market value means overpaying.
But that’s not necessarily what’s happening. When inventory falls and demand remains strong, competition is a natural outcome.
The buyers succeeding right now are the ones who understand the difference between paying too much and paying fair market value.
Those are two very different things.
The Market Is Becoming More Selective
I don’t think we’re suddenly heading back to the frenzy markets of 2021. That’s not what these numbers suggest.
What I do think is happening is that the buyer’s market many people became accustomed to over the last year is becoming much more selective. Opportunities still exist.
There are still good purchases to be made.
There are still sellers who need to move.
There are still negotiations to be had.
But increasingly, those opportunities are going to buyers who are prepared. The people doing well right now aren’t necessarily the ones with the biggest budgets.
They’re the ones who know what they’re looking for and are prepared to act when they find it.
My Take
The biggest mistake I see buyers making today is assuming the market they’re shopping in is the same market that existed six months ago. It isn’t. Markets evolve gradually.
Then one day everyone realizes they’ve already changed.
Personally, I think we’re somewhere in that transition right now. The opportunities haven’t disappeared.
But the window of unlimited choice is beginning to narrow. And the buyers who recognize that early will likely have the biggest advantage.
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