The Reality Check of 2025
This past year has been nothing short of a stress test for homeowners, landlords, and investors across the Greater Toronto Area.
From dozens of conversations with clients, one truth keeps surfacing:
Rents are slipping.
Mortgages still sting.
Emotional attachment to properties often clouds smarter decisions.
So, let’s cut through the noise.
Below is a straight-talking breakdown of where the market stands, the lessons we’ve learned in 2025, and what you can start doing now to position yourself for success in 2026; whether you’re buying, selling, or just trying to hold your ground.
Market Snapshot: The Brutal Truth
Here’s what’s really happening right now:
- Rental income is softening.
Some units are down $500/month compared to last year. Not just across the city but within the same buildings. - Listings are up, buyers are picky.
Especially in the condo market, where builder fire sales and bankruptcies have poisoned comparable values. - Negative cash flow is real.
Higher mortgage payments + lower rents = bleeding equity if you don’t adjust course.
Winter Action Plan: 6 Moves to Prep for 2026
1. Stabilize Cash Flow — Now
If your mortgage is crushing your monthly budget, refinancing or selling before the spring market surge could be your best play.
Rule of thumb: Losing $1,000+ per month on a single property? It’s time to reassess.
2. Prep Your Property Early
Treat January – February as your project runway.
- Paint
- Flooring
- Minor repairs
Don’t let perfectionism delay progress — pace and market timing matter more than pride.
3. Get on the Same Page with Your Partner
Whether it’s your spouse or a business partner, book a short sit-down to agree on goals:
- Sell in spring?
- Hold and rent?
- Reposition for later gains?
Misalignment today = messy decisions later.
4. Price Strategically, Not Sentimentally
Today’s market punishes overpriced listings.
- Price to spark interest, not chase a fantasy.
- Use offer dates or staggered showings to build demand strategically.
5. Build Liquidity and Emergency Funds
Closing delays, appraisals falling short, legal surprises — they happen.
Stay sharp and act quickly.
6. Plan for Fallbacks
If you need to sell fast, where will you live?
- Family
- Short-term rental
- Move to a lower-cost market
Knowing your Plan B helps you act faster when opportunities or challenges arise.
Final Word: Be Proactive, Not Passive
Whether you’re planning to list in 2026, reinvest, or just ride out the storm, preparation beats hesitation every time. The market will continue to shift; but the clients who stay ready, aligned, and informed will be the ones who come out ahead.
Need help assessing your position or planning next steps?
