Real estate made clearer, without the jargon.
- roger9030
- Jul 24
- 2 min read
Headlines focus on fewer sales and rising inventory, which can sound like the market’s crashing.
But here’s the thing: the past few years were extreme sellers’ markets. Homes were selling in days, sometimes with a dozen offers, and prices were climbing fast. That kind of market wasn’t sustainable, or healthy, for most buyers.
So today’s slower pace and higher inventory might feel like a downturn, but it’s actually a sign of things balancing out. Don’t take my word for it. Today we’ll help you look at the numbers and decide what’s really happening.
The tool: Months of inventory
Months of inventory tells us how long it would take to sell all the homes currently listed if nothing new came up for sale and homes kept selling at the same pace as last month.
The lower the number, the faster the market’s moving.
Here’s how the Ontario Real Estate Association (OREA) breaks it down:
Under 4 months: Seller’s market (homes sell quickly, prices can rise)
4–6 months: Balanced market
Over 6 months: Buyer’s market (more choice, homes take longer to sell)
So let’s look at the numbers across the entire City of Toronto at the end of June and do some quick math:
Freehold Homes – Toronto
Available: 4,373
Sold in June: 1,187
Months of inventory calculation: 4,373 ÷ 1,187 = 3.7
So at the current pace, it would take just under four months to sell all the freehold homes on the market. That puts freeholds on the edge between a seller’s and a balanced market. Things have cooled compared to the frenzy of past years, but freeholds are still moving fairly well.
Condos – Toronto
Available: 8,165
Sold in June: 1,151
Months of inventory calculation: 8,165 ÷ 1,151 = 7.1
Condos are showing a different picture. With just over seven months of inventory, this segment leans into buyer’s market territory. Buyers have more choice and time to decide, and sellers need to price sharply to attract offers.
Putting it all into perspective
Understanding months of inventory helps you see what’s really happening so you can make your own decisions with clearer eyes. So now you know…
The market isn’t crashing, it’s balancing out after years that were overheated and stressful for many buyers.
There’s more choice and less pressure now, and while prices and selling times have adjusted, this shift is making the market healthier and fairer overall.
Is there anything else you’d like me to explain or dig into next time? Let me know what you’re curious about. We’re here to make things easier and less stressful for you. Reach out anytime.