It's now a good time to buy a house in Toronto

The dream of owning a house in Toronto — let alone a detached one — is still far fetched for many, but it's at least come back from the realm of pure fantasy over the last few months.

Toronto's detached housing inventory is currently experiencing a huge surplus, and some analysts think that prices are set to drop significantly in response.

Between the rental units that are few and far between, new condos built for the rich, and overall affordability being at an all time low, this comes as some good news. Put specifically, detached home inventory is up 109 per cent since last year according to the Toronto Real Estate Board.

Prices for detached homes have been mostly flat recently, reflecting the cooler housing market of the last few months. Month over month, detached prices in the GTA averaged $930,500, down 0.59 per cent since September.

In fact, the number of detached homes sold saw a decline of 40.4 per cent since this time last year, which suggests that Toronto might finally be edging into a buyer's market. Right now prices haven't reduced a ton, but that could be set to change should an over supply persist.

The Toronto housing market has witnessed a cooling trend over the past few months since reaching all time highs in spring. Plenty of caution is required when tracking current trends, but there's no question that buyers are in a much better place these days.