What to know
- National home prices fell four per cent year-over-year in April, with the average price dropping from approximately $809,000 to $777,000.
- In Toronto, average home prices fell by eight per cent, decreasing from $1,161,000 in April 2025 to $1,068,000 in April 2026.
- The price decline varied across segments: single-family homes dropped by four per cent, semi-detached homes by five per cent, and condos by seven per cent.
- While overall affordability remains a hurdle, some investors may find that falling rents cannot support the high price levels of certain condo types, contributing to further price corrections.
A new house price index (HPI) report has revealed that home prices are significantly dropping, especially for major markets across the country, including Toronto.
A new report by real-estate platform Wahi and property valuation services provider Real Property Solutions (RPS) revealed that overall home prices have declined four per cent year-over-year in April across the country, with the average home prices dropping from approximately $809,000 to $777,000.
The decline in prices also varies according to housing types, with single family homes recording a four per cent decline, while semi-detached home prices dropped by five per cent and condo prices by seven per cent.
Although home prices have been declining over the past few months, RPS-Wahi Economist Ryan McLaughlin explains that the April report also registered a significant difference in rates for major real estate markets across the country.
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While markets known for their steep prices, such as Calgary, Halifax and Toronto, had previously been contributing for the overall HPI to grow, they are now registering significant declines.
In Toronto, the average home price was at $1,161,000 last April but went down to $1,068,000 in 2026, representing an eight per cent decline.
According to McLaughlin, the drop reflects declining demand, as immigration levels continue to go down across the country while several condo developments are now reaching their completion dates in some of these major cities.
“Not to dismiss the notion of housing shortages, which we’ve heard a lot about. But there has been a lot of building of a certain type of condo product in these cities, many of which are reaching completion now,” he said.
“With single detached, I think the story is more just immigration slowdown, the unwinding of the COVID situation… People really are still being dragged back into the office, and that’s meaning people that bought single detached in those sorts of places, there may not be as much interest.”
While home affordability in Canada continues to be a challenge, McLaughlin says those looking to buy a home might see more affordable mortgages in Toronto, although certain types of condos might still see steep prices.
“If you’re an investor and you’re buying a certain type of condo, it may not work for you despite the decline in prices just because the rents can’t support the price level that it prevailed at, and that’s why prices continue to decline,” he said.
Whether prices are going to keep going down over the next few months or will finally pick up is still to be determined as market conditions change.
