June 16th, 2026 | Canada

Are Toronto Buyers Losing Their Negotiating Power?

For much of the past two years, Toronto-area buyers have enjoyed something they hadn’t seen in a long time: options.

More listings, fewer competing offers, and slower sales gave many buyers room to negotiate on price, conditions, closing dates, and even repairs. For those who remembered the frenzy of 2021 and early 2022, it felt like an entirely different market.

But as we move through the spring of 2026, the latest market data suggests that buyer leverage may be starting to shift.

Not dramatically. Not overnight.

But enough that buyers planning a move this year should be paying attention.

Why Buyers Have Had the Upper Hand

The Toronto market spent much of the last two years adjusting to higher borrowing costs and affordability challenges.

As demand cooled, inventory increased.

That created a market where buyers could:

• Take more time making decisions
• Include financing and inspection conditions
• Negotiate more aggressively
• Walk away from homes that didn’t represent good value

For many buyers, especially move-up families, this created opportunities that simply didn’t exist during the ultra-competitive years.

The challenge today is that market conditions rarely stay the same for long.

The Latest Numbers Suggest a Shift

The strongest indication of a changing market isn’t actually home prices.

It’s the relationship between supply and demand.

In May 2026:

• GTA home sales increased to 6,583 transactions
• Average prices increased to approximately $1.07 million
• The Sales-to-New-Listings Ratio (SNLR) rose to 37.2%

Compared to April:

• Sales increased by 10.7%
• Average prices increased by 1.7%
• SNLR increased by 7.5%

What does that mean in plain English?

Buyers became more active, and demand grew faster than supply.

That’s one of the earliest signs of a tightening market.

While conditions still favour buyers in many segments, the amount of negotiating power available today is not quite what it was six months ago.

Where Buyers Still Have Leverage

This doesn’t mean bidding wars are suddenly back across Toronto.

Far from it.

Many sellers remain motivated, and inventory levels are still providing buyers with choice.

The strongest opportunities continue to be found in:

Properties That Have Been Sitting

Homes that have been on the market for several weeks often present the best opportunities for negotiation.

Sellers in these situations are typically receiving less traffic and may be more willing to discuss pricing or terms.

Homes Requiring Updates

Turnkey properties continue to attract strong interest.

Meanwhile, homes requiring cosmetic updates or renovations often experience less competition.

For buyers willing to invest some sweat equity, these properties can still represent strong value.

Certain Condo Segments

While every building and neighbourhood is different, many condo buyers continue to enjoy more leverage than freehold buyers.

This is especially true when comparing downtown condo inventory to family-oriented freehold neighbourhoods.

Where Leverage Is Already Disappearing

Not every segment of the market behaves the same way.

In fact, one of the biggest trends we’re seeing is market segmentation.

Some properties continue to attract immediate attention.

These often include:

• Updated family homes
• Desirable school districts
• Move-in-ready properties
• Well-priced listings in established neighbourhoods

When these homes come to market, buyers frequently find themselves competing again.

In these situations, waiting too long or assuming every seller is desperate can be costly.

The strongest properties are still commanding attention.

The Risk of Waiting for the “Perfect Time”

One of the most common conversations we’re having right now is with buyers who are waiting for one more thing:

One more rate cut.

One more price drop.

One more signal from the market.

The challenge is that markets don’t announce turning points in advance.

By the time most buyers feel confident that conditions are improving, prices have often already started responding.

We’re beginning to see some of those early signs now.

Sales activity is increasing.

Prices are moving upward month-over-month.

Buyer confidence is gradually improving.

None of this guarantees a major market surge.

But it does suggest that the period of maximum buyer leverage may not last forever.

What Buyers Should Focus On Instead

Rather than trying to perfectly time the market, buyers should focus on factors they can control.

These include:

• Purchasing within a comfortable budget
• Choosing the right neighbourhood for long-term needs
• Understanding local market conditions
• Identifying properties where negotiation opportunities still exist

The best purchase is rarely the one made at the absolute bottom of the market.

It’s the one that supports your family’s goals while balancing affordability, timing, and lifestyle.

Final Thoughts

Toronto buyers still have negotiating power.

But the latest market data suggests that leverage is beginning to shift.

Demand is growing faster than supply.

Prices are edging upward.

Competition is increasing for well-positioned homes.

For buyers planning a move this year, the opportunity isn’t gone.

But the window may not be as wide open as it was just a few months ago.

The buyers who understand where leverage still exists — and where it doesn’t — will be best positioned to make smart decisions as the market continues to evolve.