PrintBMO Isn't Optimistic for Toronto's 2026 Housing Market After Last Year's Weakness
BY MT Newswires | ECONOMIC | 01/08/26 07:09 AM EST07:09 AM EST, 01/08/2026 (MT Newswires) -- Toronto home sales were down 8.9% year over year in December, closing out a very subdued year, said Bank of Montreal (BMO).
Those eagerly awaiting a rebound in volumes and prices on the back of the Bank of Canada rate cuts were sorely disappointed, stated BMO.
The reality is that most of the intense demand pressure is gone, be it from demographics or the "rabid fear of missing out" (FOMO) appetite, noted the bank. What the market is left with is income, rent and interest rate fundamentals -- and they still don't argue
for a sharp acceleration in prices.
Indeed, prices were down 6.3% year over year in December, continuing their gradual month-to-month downward path, it added.
As to what 2026 has in store, BMO pointed out that maybe some gradual tightening of conditions, but generally "more of the same."
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