No sign of a quick 2026 turnaround in Toronto's housing market, warns TRREB

Toronto’s housing market started 2026 on the back foot, with fresh numbers from the Toronto Regional Real Estate Board (TRREB) pointing to a quieter, more buyer-friendly landscape, and little sign of a quick turnaround.

Home sales in the Greater Toronto Area fell 19.3% year over year to 3,082 transactions in January, while the average selling price dropped 6.5% to $973,289. The MLS Home Price Index composite benchmark slipped 8%.

New listings were also lower, down 13.3% to 10,774, and active inventory rose 8.1% to 17,975 as properties stayed on the market longer.

“January’s market data reflect a continuation of a slower start to the year compared to a year ago, as affordability challenges and economic uncertainty remain top of mind for many buyers,” TRREB said.

Market balance tilted further toward buyers, with average days on market rising to 45 from 37 and property days on market climbing to 67 from 55.

“While there are signs that some buyers are taking advantage of a broader selection of homes and more balanced conditions, home sales continue to be suppressed relative to early 2025 as market participants adapt to the current interest rate environment,” TRREB said.

Sales drops were broad-based: detached transactions fell 13.6%, semis were down 19.2%, townhouse sales declined 23.7% and condo apartment sales slid 26%.

Prices also softened across the board, with detached values down 7.4%, semis down 9.7%, townhouses off 9.4% and condo prices down 9.8%.

Meanwhile, an Ipsos survey in the board’s 2026 Market Outlook found only 22% of GTA households intend to buy this year, down five percentage points from 2025, even as TRREB projected 60,000 to 70,000 sales and an average price range of $1 million to $1.03 million. 

TRREB president Daniel Steinfeld said “affordability has improved, but uncertainty continues to weigh on long term decisions like homeownership,” adding that “greater economic clarity in the months ahead could restore confidence and help unlock demand that has been building for several years.”

Despite this, new survey across Vaughan, Mississauga, Brampton, Durham Region and Simcoe County shows overwhelming concern about housing costs and strong support for cutting government-driven charges on new construction.

CMP

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