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If you are looking to buy real estate in the Greater Toronto Area this year, you are stepping into a market that has officially split in two.

According to the latest June 2026 data from the Toronto Regional Real Estate Board (TRREB) and the Building Industry and Land Development Association (BILD), buyers are currently facing a fascinating divergence. In one corner, new-build low-rise homes are flying off the shelves. In the other, the downtown condo market is flooded with inventory, driving prices down and attracting serious institutional money.

For buyers, this creates a major strategic decision: Do you chase the government incentives on a new build, or do you take advantage of the high inventory to negotiate a steep discount on a condo?

Here is a breakdown of exactly what is happening in the GTA market right now, and how you can position yourself to win.

Path 1: The Low-Rise Boom & The HST Rebate Advantage

If you have been holding out for a detached, semi-detached, or townhome, the landscape is shifting quickly. New low-rise home sales have beaten their 10-year average for the second consecutive month.

Why the sudden rush? It comes down to the province's enhanced HST rebate program for new construction. Buyers are realizing that the tax savings on a brand-new home often outweigh the benefits of buying resale, especially when builders are offering flexible deposit structures to close the deal.

However, if you are looking at the resale freehold market, the window of opportunity is tightening. TRREB’s May and June data show that new listings have dropped by nearly 18.9% year-over-year.

The Takeaway for House Hunters: Inventory for low-rise homes is shrinking. If you want a freehold property, the time to sit on the fence has passed. The enhanced HST rebate makes new builds incredibly attractive, but if you prefer an established neighborhood, you will need to act before the lack of resale inventory drives prices back up.

Path 2: The Downtown Condo Squeeze

While the low-rise market tightens, the Toronto condo market is currently a true "Buyer's Market."

Condominium sales have dropped significantly below their 10-year average, and active listings are piling up. Sellers who bought pre-construction a few years ago are now looking to offload units, creating a glut of supply. Currently, the sale-to-list ratio in the GTA is hovering around 98%—meaning buyers finally have the power to negotiate under the asking price.

But here is the most important signal for everyday buyers: Institutional investors are quietly swooping in.

Just this week, news broke that a Canadian corporate buyer purchased $30 million worth of unsold condos in downtown Toronto—and stated they are "just getting started." Institutional money always buys at the bottom of the market. If massive corporations are buying Toronto condos in bulk right now, they are betting heavily on a fast recovery.

The Takeaway for Condo Buyers: Do not let high condo fees or temporary price stagnation scare you away. You currently have more negotiating power than buyers have had in years. Follow the "smart money" and secure a downtown condo at a discount before the institutional buyers scoop up all the premium inventory.

Which Path is Right For You?

The 2026 market divide means there is no "one size fits all" advice.

• If you prioritize land, space, and tax incentives, the new-build low-rise market is calling your name.

• If you want to buy at the bottom of the market and secure a long-term asset in a world-class city, the downtown condo market is overflowing with opportunity.

At RE/MAX Plus City, we track these micro-trends daily. We know which builders are offering the best HST rebate incentives and which downtown condo buildings have motivated sellers ready to negotiate.

Contact our team today remaxpluscity.com/contact to discuss your 2026 real estate strategy. 

If you have been watching the Greater Toronto Area (GTA) real estate market in 2026, you have likely noticed a sharp increase in listings containing the phrase: "Property being sold under Power of Sale."

With mortgage renewal rates causing financial strain for many homeowners and investors, Power of Sale listings have become a major topic. For buyers, these properties represent a unique opportunity to enter the market or secure an investment—but only if you understand the strict legal rules that govern them.

This guide breaks down exactly how a Power of Sale works in Ontario, the hidden risks of the "As-Is" clause, and how to successfully buy one in today's market.

What is a Power of Sale?

A Power of Sale is a legal mechanism that allows a mortgage lender (like a bank or private lender) to sell a property when the homeowner stops making their mortgage payments.

Instead of going through a lengthy and expensive court process, the right to sell the property is written directly into the standard Ontario mortgage contract. Once the homeowner defaults, the lender must provide a notice period. If the debt isn't paid, the lender can legally list the home on the MLS and sell it to a new buyer.

Power of Sale vs. Foreclosure: The Critical Difference

Many buyers mistakenly use the terms "foreclosure" and "Power of Sale" interchangeably. In Ontario, they are entirely different, and understanding this changes how you should negotiate.

The Bottom Line: Because lenders in Ontario have a fiduciary duty to the original homeowner, they cannot hold a "fire sale" and sell the home for pennies on the dollar. You can get a fair deal, but you will not get a house for 40% off market value.

Why Buy a Power of Sale Property?

Despite the lack of deep discounts, buyers and investors are actively seeking these properties in 2026 for three main reasons:

1. Motivated, Logical Sellers: You are negotiating with a bank's asset manager, not an emotionally attached homeowner. They want a fast, clean transaction.

2. Less Bidding Competition: Many everyday buyers are scared off by the legal terminology and the "As-Is" condition, leaving more room for prepared buyers to negotiate.

3. Value-Add Potential: Because defaulting homeowners often fall behind on maintenance before they lose the home, these properties often need cosmetic updates. This presents a great opportunity for buyers willing to put in a little "sweat equity."

The Hidden Risks: Understanding "Schedule A"

When you submit an offer on a Power of Sale, the bank will attach a mandatory legal document usually called Schedule A. This document deletes standard buyer protections and is the reason you need an experienced real estate team.

Here is what you are accepting when you buy a Power of Sale:

• The "As-Is, Where-Is" Clause: The bank never lived in the home. They will not guarantee that the roof doesn't leak, that the furnace works, or that the basement is dry. If you find a problem after closing, it is entirely your responsibility.

• No Clean-Up Guarantees: The bank will not guarantee that the property will be professionally cleaned or that the previous owner's junk will be removed before you move in.

• The Right of Redemption: Up until the moment the property officially closes, the original homeowner has the legal right to pay off their debt and halt the sale. If this happens, your purchase agreement is canceled (though you do get your deposit back).

How to Successfully Buy a Power of Sale in 2026

If you are ready to navigate the risks, here is how you position yourself to win:

1. Never Waive Your Home Inspection: Because of the "As-Is" clause, a professional home inspection is your only line of defense. Never buy a distressed property blindly.

2. Have Your Financing Locked In: Banks prefer clean, straightforward offers. Have your mortgage pre-approval fully secured and a healthy deposit ready. Lenders are less likely to accept offers with long, complicated financing conditions.

3. Work with a Specialist: You need a Realtor who knows how to read bank schedules, negotiate with asset managers, and spot the signs of a good investment.

Ready to see what is on the market?

We track distressed properties across the GTA. Click here to view our exclusive list of current Power of Sale listings.

Frequently Asked Questions

Are Power of Sale properties cheaper than regular homes?

Not drastically. Lenders are legally required to sell the home at Fair Market Value. While you might secure the property slightly below market value due to its "As-Is" condition, you will not find extreme discounts.

Can I get a mortgage on a Power of Sale property?

Yes. You can finance a Power of Sale just like any other home. However, your lender may require an appraisal to ensure the home is in habitable condition before they approve the funds.

How long does it take for a bank to accept an offer?

Unlike a standard sale where a homeowner might reply in 24 hours, bank offers often take 2 to 5 business days. The offer must usually be reviewed by an asset manager and sometimes a recovery committee.

How do I find Power of Sale listings in Toronto and the GTA?

They are listed on the MLS, but they are often hidden in the "Brokerage Remarks" that only licensed Realtors can see. The best way to find them is to work with an agent who actively filters for these listings. Contact the RE/MAX Plus City team today to get started.