Toronto Home Sales Decline as Buyers Wait for Clearer Economic Signals

The Greater Toronto Area (GTA) real estate market saw a notable slowdown in September 2026, as home sales and new listings both declined year over year. According to the Toronto Regional Real Estate Board (TRREB), there were 5,040 transactions through its MLS system, marking a 9% drop from September 2025. This decline followed three consecutive months of annual decreases, reversing the spring rebound when sales had risen 9.4% year over year in June.

Sellers also pulled back, with new listings falling 14.4% to 16,500 and active listings dropping 9.3% to 26,131. Prices continued to slide, with the average selling price decreasing 5.1% to $1,006,409, while the MLS Home Price Index composite benchmark fell 4.7% to $917,600. The suburbs, particularly the 905 regions surrounding Toronto, experienced the most significant declines, with detached home sales falling 10.3% compared to a 4% drop within the city.

Townhouses saw the largest drop in sales, sliding 12.8%, and condo apartments posted the steepest price decline, with the average falling 7.7% to $605,257. Homes also took slightly longer to sell, averaging 34 days on the market compared with 33 a year earlier. TRREB's chief information officer, Jason Mercer, noted that substantial pent-up demand exists but that buyers are waiting for clearer signals on jobs, inflation, and borrowing costs before committing.

The Bank of Canada held its overnight rate at 2.25% on September 2 but warned of increasing inflation risks. Abigail Watt of UBS Global Research now expects rate increases in October and January. Additional factors influencing the market include local politics, with upcoming municipal elections across the GTA and Simcoe County potentially affecting buyer confidence and demand.