Toronto Housing Market Review

Monthly Market Updates

Toronto Housing Market Review

September 2026

Home Sales

9.0% YoY

Listings

14.4% YoY

Average selling price

5.1% YoY

Prices drop, but so did listings. ↓↓

Pent-up demand is building.

GTA buyers stayed cautious in September as uncertainty about the economy, inflation and borrowing costs weighed on sales. But TRREB says there is substantial pent-up demand: many households fully intend to buy in the months ahead, and they’re waiting for confidence in their jobs and rates. Homes are still taking about 51 days to sell, so today’s buyers have time and leverage. Listings declined, but so did prices (in condos more than anything (prices falling 7.7% YoY).

Price Decline Trend
Apr ▼4.9% → May ▼4.6% → Jun ▼3.9% → Jul ▼4.5% → Aug ▼2.7%→ Sep ▼5.1%

Toronto Housing Market

Market Insights

New ownership has stalled

CMHC reports population-adjusted starts in H1 2026 were among the lowest since 1996. Freehold starts are at record lows and condo launches have largely stopped. Less new supply now means tighter conditions later.

Renewers: rates on hold

The Bank of Canada overnight rate is 2.3% and prime sits at 4.5%. With inflation at 3.0%, further cuts aren’t a given. If you renew in the next six months, compare fixed and variable now.

Condo market ripe for first-time buyers

Sales were down 9.0% in September vs. 2.1% in August, so buyers pulled back noticeably. Paired with condo prices falling, this could be a good opportunity for first-time homebuyers.

Election could shape closing costs

The upcoming municipal election will set housing policy for four years. TRREB is pushing to reduce Toronto’s Municipal Land Transfer Tax and keep it from spreading across the GTA.

+50%

more annual housing starts needed over the next decade to return to 2019 affordability

156

condo units started in the City of Toronto in H1 2026, vs. ~7,000 a year over the past decade

+82%

jump in purpose-built rental starts, now ahead of condo starts for the first time since 1994

Less choice.
More competition.

Fewer listings = more competition

For anyone planning to make a move, whether that’s selling before buying something else or timing a renewal with a purchase, the market you’re stepping into this fall looks different from six months ago. Homes are taking about 51 days to sell on average, so you still have negotiating room, but the window is tightening.

shaking hands on short-term mortgage deal for home

Toronto Housing Market Review

What This Means for Buyers & Homeowners

For Buyers:

Prices are 5.1% below last year, which means more buying power
Days on market are still 50+, so you have time to negotiate
Pent-up demand is likely to increase competition

For Homeowners/Renewers:

Variable rate holders get a breather
Rate-cuts are looking unlikely so smart to lock in a rate early
Home values are down 4.7% from a year ago, so check your equity before renewing or refinancing

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GTA Mortgage Broker • Market Intelligence Report • Updated Monthly
Data sourced from the Toronto Regional Real Estate Board (TRREB) and CMHC • August 2026 • Get the PDF version

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