I absolutely love Kensington Market! We stayed literally right next to this area. This place is definitely hip and great! There are many different little cute shops, some very interesting shops if you wanted to buy small gifts, and many places to eat. There are also small little super markets with fresh fruits and vegetables. There are always many people walking around in the day time, but at night there are very little people on the streets. The stores around the area close fairly early, usually 6-7pm. There are a few little bars that stay open late and get busy!
They also have small coffee/tea places too!
This is a place that you must come when you are in Toronto! I can't wait to come back!