February 5, 2026
Toronto Home Sales Down 19.3% Y-o-Y In 2026
Greater Toronto Area housing conditions weakened further in January, with the Toronto Regional Real Estate Board reporting a 19.3% year-over-year drop in sales to 3,082 and a 6.5% decline in the average selling price to $973,289—below $1 million for the first time since January 2021. While new listings fell from a year earlier, active listings rose 8.1% to 17,975 and days on market jumped to 45, signalling elevated supply. TRREB expects this imbalance to keep prices under pressure through at least the first half of 2026, with potential stabilization later in the year if confidence improves.
Buyer sentiment has cooled amid broader economic uncertainty. An Ipsos survey found just 22% of GTA residents likely to buy within the next year, down from 27% in 2025, despite improved affordability from lower prices and rate cuts by the Bank of Canada. Uncertainty around Canada–U.S. trade—tied to tariff threats by Donald Trump—and the upcoming trade agreement review are weighing on decisions. Population dynamics are also in flux: Statistics Canada reported a Q3 2025 population decline, with Ontario seeing the largest drop, partly due to reduced temporary student permits that trimmed non-permanent residents and affected the rental market.
Still, there are pockets of resilience. Toronto-core areas are seeing renewed interest, including multiple offers in the first-time buyer segment, as buyers react to price resets. Detached homes averaged $1.28 million (-7.4% YoY) and condos $604,759 (-9.8% YoY). While interest rates matter less in day-to-day conversations, buyers remain cautious about timing and global uncertainty. The mood is improving among some buyers, even as sellers grow more hesitant to list, suggesting a tentative thaw rather than a turnaround.
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ARTICLE SOURCE : https://ca.finance.yahoo.com/news/gta-home-sales-p...