February 1, 2026
Canada’s residential real estate market continues to decline, with few exceptions. Trends indicate this weakness will persist through the rest of the year and likely into next year. Increasingly, properties are quietly being taken over by banks, and some lenders refuse to renew mortgages. The condo market is particularly weak. Several new developments in Toronto—and possibly elsewhere—are financially strained or near insolvency, with many quietly being acquired by large, mostly U.S.-based corporations.
Now is generally not the time to sell unless necessary, or if you’re buying at the same time, especially when moving up to a higher-priced home.
Sellers should reconsider the traditional 5% deposit. Today, stronger security is important; deposits closer to 10% can reduce the risk of buyers backing out.
Homeowners must have lawyers review mortgage documents carefully, including renewal obligations and penalties for early payout, refinancing, or mortgage reductions.
In the current market, both buyers and sellers must exercise greater caution.
If you’re considering selling in the near future, I can meet for a confidential, no-nonsense discussion to outline do’s and don’ts and provide a realistic estimate of your home’s value in today’s market.
Ecko Jay
Broker of Record / Owner