Suburbs vs downtown: Toronto's mixed housing market may signal coming trend

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Toronto home prices are falling, but not everywhere.

But the declines are masking the resilience of Toronto's core, where the median price has not fallen but rather climbed 5.2% from February to April.The rapid price declines in Toronto's suburbs and relative strength of the city core may be a preview of how a potential correction could play out across Canada. Smaller cities where prices jumped the most are at greater risk of steep declines than major urban centers like Montreal and Vancouver.

"The core is doing significantly better than the suburban market," said Realosophy Realty President John Pasalis, adding that multiple offers are still common downtown.The Durham region and Simcoe County on Toronto's outskirts, where prices skyrocketed more than 85% during the pandemic as white-collar workers arrived in droves, have seen prices fall by 15% in two months.

"I'm working with people who moved out of the city in 2020, and they now want to have a small condo in the city because their workplace that promised they can be remote forever is now saying, 'You have to be in the office two to three days a week,'" said Toronto realtor Lisa Bednarski at BSpoke Realty.

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