Sales slumped, prices dropped, and major markets like Toronto — once frantic and unstoppable — hit the brakes hard in 2024 and 2025.

Between a recession, stubborn post-COVID interest rates, and a surge in listings from owners desperate to offload property, the market has been stuck in a deep freeze. Buyers had all the power. Sellers were stressed. Developers were sidelined.

But now, with 2026 around the corner, the big question is:

👉 Is Ontario’s housing market finally about to turn a corner — or will home prices fall even further?

Let’s break down the newest predictions from RE/MAX and what they mean for Ontario homeowners, buyers, and investors.

📉 2026 Home Prices: More Pain Before Stability?

RE/MAX’s 2026 Canadian Housing Market Outlook suggests that home values will continue to fall, but not nearly as sharply as in previous years.

🇨🇦 Across Canada:

• Average home price expected to drop another 3.7%

• Home sales expected to increase 3.4%, signalling a shift to a more balanced market

This means:

👉 Prices may dip further, but demand is slowly returning as buyers sense opportunity.

🏙️ Toronto Real Estate Forecast 2026: Another Drop Coming

RE/MAX predicts that Toronto will see:

• 3.5% further price decline in 2026

• Average home price dropping to $1,037,354

• 5% increase in home sales after a brutal 17.2% drop in 2025

• A balanced-to-buyers market throughout the year

This is still far from the chaos of 2021–2022, but it shows that buyers are cautiously stepping back in — especially those who sat on the sidelines waiting for affordability to improve.

📍 Where Prices Will Fall the Most in Ontario

Only three Ontario markets are expected to see prices decline next year:

• Toronto → –3.5%

• Kitchener–Waterloo → –3%

• Kenora → –2.5%

Despite these drops, all three regions are expected to see more sales activity, which suggests buyer interest is quietly returning.

📈 Where Prices Will RISE in Ontario in 2026

Most Ontario markets are expected to gain value, with increases between 1% and 5%, including:

• Kawartha Lakes

• Sudbury

• Thunder Bay

• Sault Ste. Marie

• Thunder Bay and Sudbury leading with ~5% growth

London and Grand Bend are expected to remain flat.

This confirms:

👉 Not every market in Ontario is struggling. Many smaller cities are already stabilizing.

💥 Which Ontario Markets Will See the Biggest Sales Jump?

According to the forecast, 19 of 20 Ontario markets will see more sales in 2026 than in 2025.

Top expected increases:

• Grand Bend: +12.5%

• Barrie: +10%

• Caledon: +7%

• Mississauga: +7%

These are markets where buyers are returning faster than expected — and where competition may increase sooner than people think.

💸 Most Affordable Ontario Markets in 2026

If you’re looking for affordability, RE/MAX expects the lowest average home prices here:

• Sault Ste. Marie: ~$356,530

• Thunder Bay: ~$405,493

• Kenora: ~$528,455

• Sudbury: ~$532,850

Meanwhile, the priciest markets remain:

• Caledon: ~$1.37M

• York Region: ~$1.28M

• Toronto: ~$1.03M

• Mississauga: ~$1.03M

🧭 Are Canadians Ready to Buy Again?

A new Leger survey included in the RE/MAX report shows:

• 10% of Canadians plan to buy a home in 2026

  (up from 7% earlier in 2025)

But…

• More than 50% believe the economy will get worse before it gets better

This reflects the emotional tug-of-war in today’s market:

Buyers want deals, but fear the economy.

🔍 What This Means for Ontario Homeowners & Buyers in 2026

⭐ For Homeowners

Prices may soften slightly, but the worst appears to be behind us in most regions. A more balanced market will help stabilize values.

If you’re looking to refinance, consolidate debt, or unlock equity, 2026 may offer better borrowing conditions as lenders adjust to increased activity.

⭐ For Buyers

You may get a better deal in early 2026 before demand ramps up.

Markets like Toronto, Kitchener–Waterloo, and Kenora could offer strong value opportunities.

⭐ For Investors

High-yield opportunities will appear in markets where prices drop but sales pick up — a classic sign of early-stage recovery.

💼 How Lendworth Helps Ontario Homeowners in Uncertain Markets

When the big banks tighten up or slow down, Lendworth steps in with:

• Fast private mortgage approvals (24–48 hours)

• Home equity loans

• Second mortgages

• Debt consolidation

• Refinance solutions

• Power of sale / arrears rescue funding

Whether you’re planning to buy, refinance, or tap into your home’s equity, our team provides flexible, lender-grade solutions based on real property value — not just credit scores.

📞 Need to Unlock Home Equity or Finance a Purchase in 2026?

Call 905-597-1225 or apply online at Apply Now