So far this year, it appears that Toronto’s housing market is still adjusting in 2026.

For all properties, prices are down 7.1% year-over-year, and sales have slipped 6.3%. That tells us something important: The market hasn’t bottomed out yet. Sellers are reluctant to sell as well this year. Listings are down 13% from the previous year, and last year was not a boom year by any stretch. So buyers have fewer options, even though prices may be more appealing.

But here’s the interesting part. Homes are still selling every day. The difference is that the strategy required to sell has completely changed. In a declining market, optimism isn’t a strategy. Positioning is.

Stop Chasing Yesterday’s Prices

One of the most common mistakes sellers make in a declining market is pricing based on what things used to sell for.

But buyers don’t look backward — they look at the most recent comparable sale. If a condo with the exact same layout and similar finishes just sold for $50,000 less than your asking price, the market has already given you your answer. Buyers see that sale. Their agents see that sale. And that becomes the benchmark.

In a rising market, you can sometimes list high and let the momentum catch up. In a declining market, you need to do the opposite. You have to get ahead of the market, not chase it down. That means pricing at or slightly below the most recent comparable sale, not above it. Because if the market slips another few percent while you wait, the next comparable might come in even lower.

Time Is Not Your Friend in a Falling Market

A strategy that worked beautifully in stronger market — “start high and come down slowly” — tends to backfire in a declining one.

Here’s why: Buyers sense hesitation. When a property sits and receives price reductions every few weeks, it starts to feel stale. Buyers assume something must be wrong with it, even if the only issue was the original price. Meanwhile, new listings are entering the market — often priced more aggressively.

The result? Your property slowly becomes yesterday’s listing. If the goal is to sell in this market, the smarter strategy is often to price sharply from the beginning and create competition, rather than trying to inch down toward the market over time. Because in a softening market, waiting rarely improves your position.

The “Rent It Out” Lever

Of course, not every seller would like to sell today. If you have a specific price you need to achieve, you may want to consider another option: waiting.

Real estate markets move in cycles. They cool, stabilize, and eventually recover. Toronto has gone through this pattern many times before. Right now, there is a large pool of pent-up buyers watching the market closely, waiting for signs that prices have bottomed out. Once confidence returns — whatever may trigger that signal— activity can come back quickly. If selling today doesn’t make financial sense, renting your property or simply holding onto it longer can allow you to ride out the softer part of the cycle. No housing market stays down forever. Toronto certainly hasn’t.

Just be aware that selling a property with tenants is more difficult in most markets. And by Ontario law, you cannot remove them to sell your property. Now, there may be ways to encourage tenants to leave, but they don’t have to leave.

Why This Market Is Actually Good for Some Sellers

Here’s something that surprises many people: This market can actually be advantageous for sellers who are upsizing. Yes, your current property might sell for less than it would have two years ago. But the property you’re buying — usually the more expensive one — has likely come down as well. And the price reduction on a larger purchase can often outweigh the loss on a smaller sale.

For example:

If your condo sells for $60K less than its peak, that hurts. But if the detached home you’re buying is $150K below where it once traded, the math starts working in your favour.

Of course, today’s market is highly inconsistent. Some homes still receive multiple offers and even bully offers, while others take time to find the right buyer.

The difference usually comes down to three things:

• Location
• Condition
• Pricing strategy

If the property taking the biggest hit in your move is the less expensive one, this market may actually help you trade up.

Don’t Try to Perfectly Time the Market

Both buyers and sellers love the idea of timing the market perfectly. The reality is that almost no one does. Markets rarely move in clean, predictable patterns. They tend to move in waves — small rebounds, brief slowdowns, and occasional false starts. The true turning point usually only becomes obvious months later, in hindsight.

It’s perfectly reasonable to wait until you feel more comfortable with the market. But trying to catch the exact top or bottom is rarely a winning strategy. The best real estate decisions are usually made when personal timing and financial readiness align, not when someone tries to outguess the market.

The Bottom Line: Strategy Matters More Than Ever

Selling in today’s market simply requires a different playbook. Not all properties are performing the same way. A renovated home in a prime neighbourhood may still attract strong interest, while an average unit in a competitive building might take longer to move. That’s why one-size-fits-all advice doesn’t work.

Every property requires its own strategy based on location, condition, competition and buyer demand. For some sellers, the right move is to price aggressively and sell now. For others, it might make more sense to rent the property and wait for the next upswing. And for those moving up the property ladder, today’s softer market might actually present an opportunity.nBut the key is understanding where your property sits in the market — and building a strategy around that reality.

Because in a shifting market like this, success doesn’t come from guessing what will happen next. It comes from having the right plan for the market that exists today.