Market Value

Learn what market value means in Canadian real estate, how it’s determined, and why it’s essential for pricing, financing, and smart investing.

Market Value

May 22, 2025


What is Market Value?

Market value is the estimated price a property would sell for on the open market, assuming both buyer and seller are knowledgeable, willing, and acting without pressure.

Why Market Value Matter in Real Estate

In Canadian real estate, market value serves as the benchmark for pricing, financing, taxation, and investment decisions. It reflects the true worth of a property based on factors such as:
  • Location and neighbourhood trends
  • Recent comparable sales (comps)
  • Property condition and features
  • Market supply and demand
  • Economic conditions and interest rates

Market value is determined through appraisals, Comparative Market Analyses (CMAs) by REALTORS®, or buyer/seller negotiation. It's distinct from assessed value (used for property tax) and listing price (seller's asking amount).

Understanding market value helps sellers set realistic prices, prevents buyers from overpaying, and enables lenders to ensure that a mortgage doesn’t exceed the property’s worth. Investors also rely on accurate market valuations to assess return potential and risk exposure.

In competitive markets, emotional bidding can inflate sale prices above market value, increasing risk for buyers if a lender’s appraisal doesn’t align. Buyers should always seek professional valuation guidance before making a final offer.

Example of Market Value

A home is listed at $850,000, but a local REALTOR®’s CMA shows its market value to be closer to $825,000 based on similar recent sales.

Key Takeaways

  • Reflects the price a property would fetch on the open market.
  • Based on local comps, condition, and economic trends.
  • Used by buyers, sellers, lenders, and appraisers.
  • May differ from assessed or listing price.
  • Vital for fair negotiation and financing decisions.

Related Terms

Additional Terms

Budgeting

Budgeting in real estate refers to the process of forecasting and managing income and expenses associated with owning, operating, or developing a property.. more

Tenant Improvements

Tenant improvements refer to custom modifications or build-outs made to a leased space to suit the tenant’s operational needs, often negotiated as. more

Highest and Best Use

Highest and best use refers to the reasonably probable use of a property that results in the highest value, provided it is legally permissible,. more

Gross Lease

A gross lease is a commercial lease where the tenant pays a fixed rent, and the landlord covers most or all operating expenses such as property. more

Brownfield

A brownfield is a property that was previously used for industrial or commercial purposes and is now vacant or underused, often requiring. more

Record of Site Condition (RSC)

A Record of Site Condition (RSC) is a formal document filed with a provincial environmental authority certifying that a property meets required. more

More For You

Hollyburn Joins Isabella High-Rise Boom With 69-Storey Skyscraper

Hollyburn Joins Isabella High-Rise Boom With 69-Storey Skyscraper
Renderings of 48 Isabella Street/KIRKOR Architects and Planners

Canadian property management and real estate development company Hollyburn Properties Limited is yet another developer to home in on Isabella Street in downtown Toronto. Hollyburn’s proposal, which went to the City of Toronto in late June, calls for the 10-storey rental apartment at 48 Isabella Street to be replaced by a 69-storey skyscraper that would up the site’s residential ante.

It’s worth noting that Land’s Edge Properties Ltd. is the owner of the site on the north side of Isabella Street mid-block between Yonge Street and Church Street, and has appointed Hollyburn 'title nominee,' according to the planning letter submitted to the City.

Keep ReadingShow less

TransLink Buys 5-Acre Industrial Site Near Vancouver Transit Centre For $63M

​The Vancouver Transit Centre at 9149 Hudson Street in Vancouver.

The Vancouver Transit Centre at 9149 Hudson Street in Vancouver. / TransLink

Regional public transportation provider TransLink has made another significant real estate acquisition, STOREYS has learned, this time acquiring a large industrial property along the Fraser River in Vancouver.

The acquired property is a subdivided portion of 9150 Bentley Street. The entire property spans 769,139 sq. ft (17.66 acres), according to BC Assessment, and TransLink — operating as the South Coast British Columbia Transportation Authority — has acquired a 5.06-acre portion of it along the eastern edge.

Keep ReadingShow less

Plans For 32-Storey Toronto Flatiron Mired In Receivership Over $28M Debt

Plans For 32-Storey Toronto Flatiron Mired In Receivership Over $28M Debt
Rendering of 3736-3750 Bathurst Street/WZMH Architects

The Ontario Superior Court of Justice has granted a receivership order over a series of development land parcels in North York, the likes of which were set to accommodate a 10-storey mid-rise and a 32-storey flatiron tower with a shared six- to eight-storey base.

The June 18 appointment order stems from an application made in April, which refers to around two dozen entities as the collective “lender,” and an indebtedness of around $28,450,456 as of March 31, 2025, “with interest, legal fees and disbursements continuing to accrue.”

Keep ReadingShow less

Choice And Control (And Cash): New Real Estate Platform Gives Sellers Keys To Success

Choice And Control (And Cash): New Real Estate Platform Gives Sellers Keys To Success

Toronto homes/Shutterstock

In a real estate industry that’s notorious for being stuck in its ways, a new Toronto-based proptech company is serving up a fresh way to spark the agent-seller relationship — and ushering in just the right amount of innovation in the process.

Launched today (and already long buzzed about), Hyyve is a platform that invites homeowners to seek bids from real estate agents — whose IDs, regulatory compliance, and accreditations have been screened for legitimacy by Hyyve — to ultimately win the role of selling their home. With careful curation and vetting running behind the scenes, the platform provides choice, data, control, and intentionality from every angle.

Keep ReadingShow less

This Forest Hill Estate Will Transport You To The French Countryside

This Forest Hill Estate Will Transport You To The French Countryside

In a city known for its architectural ambition, few addresses exude the sense of poise found at 221 Forest Hill Road.

Tucked into one of Toronto’s most prestigious neighbourhoods, this custom-built estate is as much an ode to old-world craftsmanship as it is a contemporary showpiece. Conceived by a dream team of local luminaries — including JTF Homes, Lorne Rose Architecture, and interior designer Dvira Ovadia — the home is a study in elegance, symmetry, and thoughtful consideration.

Keep ReadingShow less

Peterson Completes Buyout Of Create Properties From Burnaby Lake Village Project

A rendering of the Burnaby Lake Village master-planned community.
A rendering of the Burnaby Lake Village master-planned community. / Hariri Pontarini Architects

The Burnaby Lake Village master-planned project has officially exited creditor protection, according to filings in the Supreme Court of British Columbia, resolving a conflict between the two local developers that partnered on the project.

Burnaby Lake Village is set for the 19-acre property at 6800 Lougheed Highway in Burnaby, directly adjacent to the Millennium Line SkyTrain's Sperling-Burnaby Lake Station, where Peterson and Create Properties were planning nearly 6,000 new homes across 14 mixed-use buildings between the heights of 12 and 25 storeys.

Keep ReadingShow less
Peterson Completes Buyout Of Create Properties From Burnaby Lake Village Project

15-Tower Master Plan Proposed For Site Of Kipling-Queensway Mall

15-Tower Master Plan Proposed For Site Of Kipling-Queensway Mall

A massive new master-planned community planned directly north of the Gardiner Expressway in Etobicoke aims to deliver 7,360 new housing units, alongside 64,501 sq. ft of commercial space, a 49,998-sq.-ft elementary school, and around 2.5 acres of public parkland.

An Official Plan Amendment application was filed by Fig Tree Construction Ltd. in late June seeking the height and density increases necessary to redevelop 1255 The Queensway in Etobicoke with the proposed master plan.

Keep ReadingShow less

Low Immigration, High Supply Pull Rents Down For Ninth Straight Month

Low Immigration, High Supply Pull Rents Down For Ninth Straight Month
Shutterstock

Canadian rents continued to slide in June, with the most pronounced declines reported in BC and Alberta and in Canada's largest cities. Driving the decline is a combination of low immigration and over supply leading to higher vacancy rates and longer vacancy terms, under which landlords are beginning to cave.

“Rent decreases at the national level have been mild so far, with the biggest declines mainly seen in the largest and most expensive cities," said Shaun Hildebrand, President of Urbanation. "However, it appears that the softening in rents has begun to spread throughout most parts of the country.”

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
2025 © STOREYS Publishing Inc. | All Rights Reserved