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During the pandemic years and shortly after, the Greater Toronto Area (GTA) saw exceptionally strong real estate demand, driven by low interest rates and buyer FOMO. Rates dropped dramatically in 2020 and remained low for a while before the Bank of Canada began a series of rate hikes starting in 2022. Now, many sellers who remember those inflationary conditions are struggling to adjust expectations toward what’s become a cooler, more constrained market.

Statistics show that average home prices in the GTA have dropped—currently around $1,022,143, down more than 23% from the February 2022 peak of $1,334,544. Monthly and yearly comparisons also reveal ongoing decline (nearly 3% month-over-month and over 5% year-over-year for August at the time of writing). Most neighbourhoods are seeing homes sell below their asking price; only a few pockets still have median sold prices exceeding list prices.

Given this new landscape, sellers must approach pricing and agent selection much more carefully. Experts recommend early, honest discussions about what the market will bear, rather than “aspirational” pricing based on pandemic-era highs. Sellers should gather multiple opinions from agents, make sure those agents are willing to physically tour the property (not just “guess from a listing”), and use hyper-local data—by home type, neighbourhood, similar recent sales—to set realistic pricing. Sometimes a strategy of listing a bit under perceived “market hype” can generate buyer interest and end up with a stronger sale.

Read the full article on: STOREYS