If you’re planning a move in 2026, you might be asking:
Should I sell my house before buying another in Toronto?
It’s one of the most common questions I get, and there’s no universal answer. In a market as dynamic as Toronto’s, the best approach depends on your personal situation, financial flexibility, and what’s happening in the housing market right now.
Toronto Real Estate Market: What’s Happening in 2026?
December capped off a quieter year in Toronto real estate, with home sales down nearly 9% year-over-year and average prices dipping just over 5%. Throughout 2025, economic uncertainty caused many buyers to hold off and sellers to wait unless they had to make a move.
But 2026 is already showing early signs of change.
While last year’s high inventory gave buyers more leverage, we’re now starting to see a shift toward a more balanced real estate market in Toronto. Lower borrowing costs and slight improvements in affordability are helping restore buyer confidence.
What This Means for Sellers and Buyers:
For Sellers: Strategic pricing and strong presentation will matter more than ever. Motivated buyers are returning, but competition is still out there. The right listing, marketed well, could move quickly.
For Buyers: The window of opportunity is still open. If you’ve been waiting for a more favourable time to enter the market, this could be it, especially before activity picks up later in the year.
Toronto isn’t back to the market frenzy of past years, and that’s not a bad thing. Instead, 2026 is shaping up to be a year of smart, intentional moves. And if you’re buying and selling a home in Toronto this year, timing will be key.
Pros and Cons of Selling Before You Buy in Toronto
Selling your current home first gives you clarity and peace of mind when it comes to budget. You’ll know exactly how much you can afford and avoid the financial stress of carrying two mortgages.
Why Selling First Can Make Sense:
You know your exact budget before house hunting.
You can avoid bridge financing or overlapping mortgage payments.
You’ll be able to make a strong, clean offer when you’re ready to buy.
The potential downside? If your perfect property hits the market before your sale is complete, you might feel pressure to rush your listing, or risk missing out.
Is It Better to Buy Before You Sell in Toronto?
In some cases, especially in niche neighbourhoods or fast-moving markets, buying before you sell may be a better fit. If you’re searching for something specific, or you’re worried about missing out, buying first gives you flexibility.
Why Buying First Could Work for You:
You can wait for the right home instead of settling under pressure.
It gives you more control over your move-in timeline.
Ideal for upsizing, downsizing, or relocating to a harder-to-find segment.
The trade-off? You’ll need to be financially prepared to carry two properties temporarily or secure bridge financing, which isn’t always ideal depending on interest rates and your lender.
How to Decide: Should You Sell Before You Buy in Toronto?
There’s no one right answer, but here’s what to consider when making your decision:
Can you afford to buy first and carry two homes if needed?
Is your current property market-ready and in a desirable location?
Are you shopping for a rare type of home or in a competitive neighbourhood?
Do you have access to bridge financing, and are you comfortable with it?
The right move depends on your priorities and comfort level, and as always, working with an experienced Toronto real estate agent can help you build a custom plan that makes sense for your timeline, goals, and lifestyle.
Final Thoughts: Selling and Buying a Home in Toronto in 2026
If you’re planning to buy and sell in Toronto this year, it’s all about strategy. 2026 is shaping up to be a more balanced, thoughtful market, one where preparation and timing can give you a real advantage.
Whether you sell first or buy first, having a clear plan (and the right support) makes all the difference.
Let’s talk about your next move. I’ll help you navigate your options, understand the current market, and make decisions that move you forward, on your timeline.
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