Divorce & Housing in Toronto: A Real Estate Guide

Toronto’s real estate market has always been its own ecosystem, and that’s truer than ever in 2025. Picture this: Toronto home sales surged by about 11% year-over‑year in July (2,205 homes sold), yet the median home price softened to $850,000, down nearly 3.4% from last year—while the average price continues to hover around the million-dollar mark WOWA. Across the GTA, average home prices are down by about 5% year-over‑year, landing in the $1.1 million range WOWA+2nesto.ca+2. For couples navigating separation, these shifts are far from theoretical—they're decisions unfolding amid falling equity and rising complexity.

The contrast is striking. On one hand, buyers are now in the driver’s seat, inventory is at an all-time high, and houses are averaging 41 days on market—a far cry from the frenzy of 2021 simpledivorce.ca+4Instagram+4Buzzsprout+4. On the other, home still represents more than bricks and mortar: it’s packed with memories, long-term plans, and, for some, unresolved tension. In a city where stepping into a home often means navigating narrow laneways and limited supply, selling under these emotional conditions takes real tactical clarity.

This is where Toronto’s market truly plays into separation strategy. Falling values can leave divorcing couples with less equity than expected—sometimes not enough to carry two households comfortably—yet enough emotional weight to stall decisions Buzzsprout. Longer sell times increase carrying costs. And when condo prices are down by more than 8% year-over‑year, the impact isn’t equal across all home types—someone anchoring in a condo may feel a sharper sting compared to someone holding a detached home or townhouse Instagram+1.

So how can separating couples make the real estate side of their journey feel thoughtful, not rushed or reactive?

First, anchor to data, not nostalgia. In July, the benchmark composite price in Toronto fell 5.4% year-over year, and average prices are closer to $981,000, with intermediate property types—condos particularly—seeing steeper drops Buzzsproutnesto.ca+1. These numbers aren’t abstract—they’re the digital scorecard telling you what buyers are willing to pay right now.

Second, know your type. In 2025, detached homes in Toronto averaged around $1.2 million, townhouses around $722,000, and condos about $578,000 CREA Stats+1. That range matters when you’re negotiating who stays, who goes, or whether it's time to sell.

Finally, timing is everything. Toronto’s market is in a buyer’s market—sales-to-new-listings ratios sit in the low 30% range, meaning buyers have the upper hand WOWA+1. In such a climate, emotional urgency can lead to price fatigue or wasted days trying to “win.” A neutral, process-oriented approach—one where both spouses see data simultaneously and have agreed in writing on decisions—primes you to sell well without losing trust.

So yes, Toronto deserves its own real estate divorce playbook. Declining prices, rising listings, and unpredictable demand mean the old “one-size-fits-all Ontario advice” won’t do. If you're walking away with one thing from this: treat the city—and your situation—with its unique dynamics, and let the market, not emotions, set the pace of your next chapter.