Should You Buy or Sell First in Toronto?
One of the most common questions Toronto homeowners ask is whether they should buy their next home first, or sell their current one first. The truth is, there’s no single right answer — but there is a best answer for your situation, based on the market, your financial comfort, your buying criteria, and the type of property you’re moving into.
When Selling First Makes Sense
Selling first gives you certainty: you know your sale price, your closing date, and your budget.
This is usually the safer route — but it’s not always the best one.
Here are the situations where selling first truly makes sense.
1. You’re Selling in a Slow or Unpredictable Segment
If your property type is moving slowly — for example, certain condo categories or homes in oversupplied pockets — it makes sense to secure the sale first.
However, you need to be careful with assumptions.
A “slow condo market” city-wide does not mean your condo is slow.
Some buildings or neighbourhoods (like Roncesvalles, Leslieville, or boutique mid-rises) can still have extremely low inventory, even when the overall condo market is soft.
In those cases, selling first is not automatically safer.
You may actually be able to sell quickly — and if what you want to buy is rare, you may risk having nowhere to go.
This is why evaluating your specific condo segment, building, and pocket matters.
2. You Need the Equity From Your Sale to Buy the Next Place
If your budget for the next home depends heavily on the sale price of your current property, selling first protects you from:
overcommitting
stretching too far
relying on bridge financing
buying based on an assumed value you may not achieve
This is especially important for first-time move-up buyers.
3. You Want to Avoid Carrying Two Properties
Selling first eliminates the risk of:
double mortgages
double utilities
double taxes
temporary bridge financing
owning two homes in a volatile period
This is the most financially conservative option.
4. You’re Okay Waiting for the Right Purchase
If you can rent, stay with family, or take your time between selling and buying, selling first gives you flexibility.
You remove pressure and can wait for:
the right neighbourhood
the right home
the right value
better interest rates
improved inventory
This strategy works well for downsizers or people relocating areas.
When Buying First Makes Sense
Buying first gives you control over where you move.
This strategy often works better for people searching for rare, specific, or high-demand homes.
Here are the situations where buying first is the smarter approach.
1. You’re Shopping in a Fast or Low-Inventory Segment
If what you want to buy is:
a detached home in a high-demand area
a larger property with family appeal
a renovated or well-maintained home in a central neighbourhood
anything scarce or unique
…it may be difficult to find the right one and even harder to secure it in competition.
In these cases, buying first prevents you from:
feeling rushed
settling for the wrong house
missing the rare opportunity
selling first and then scrambling
This is especially important for families upsizing.
2. Your Current Home Will Sell Easily
Here’s the nuance many guides miss:
Even if the home you’re buying is in a fast segment, buying first only works if your current home is also in a relatively strong, predictable segment.
Examples:
You own a detached home in a desirable pocket.
You own a renovated semi or townhouse in a solid family neighbourhood.
You own a condo in a high-demand building or low-inventory area.
You’re downsizing from a high-demand freehold to a slower-moving condo.
In these situations, you can buy first because selling your home will likely be:
quick
predictable
easier to price
lower risk
This is especially true for downsizers.
If you're selling a property that historically sells well, buying first ensures you secure the right long-term home without uncertainty.
3. You Have Financial Flexibility
Buying first makes sense if you can comfortably handle:
bridge financing
temporary overlap
market fluctuations
carrying two properties for a short period
Not everyone fits this profile — but if you do, buying first can give you more control and reduce stress.
How to Decide: A Simple Framework
The best way to make this decision is to compare two things:
A. The speed and predictability of what you’re selling
vs.
B. The speed and scarcity of what you’re buying
This leads to four possible scenarios:
1. Selling Slow / Buying Slow
Sell first.
Too much risk on both ends.
2. Selling Fast / Buying Slow
Buy first.
You won’t struggle to sell, but buying may take time.
3. Selling Slow / Buying Fast
Sell first.
Fast segments move without you — but if your sale is unpredictable, you need certainty.
4. Selling Fast / Buying Fast
Case-by-case — but usually buy first.
Fast + rare = secure the next home before you lose it.
The Bottom Line
There is no universal answer to “Should I buy or sell first?”
The right strategy depends on the micro-markets you’re operating in.
A good agent doesn’t answer this question with a blanket rule — they analyze:
your home’s sellability
your target home’s inventory
the pace of each segment
your financial comfort
your timeline
your risk tolerance
In Toronto’s unpredictable, segmented market, making the wrong move can cost tens of thousands or leave you without a place to go.
