Toronto-area home sales fall nearly eight per cent as housing market remains weak

TORONTO — Home sales across the Greater Toronto Area declined sharply in October as higher borrowing costs, inflation and economic uncertainty continued to weigh on Canada’s largest housing market.

According to figures released Wednesday by the Toronto Regional Real Estate Board (TRREB), 5,603 residential properties changed hands in October 2026, representing a 7.9 per cent decline compared with the same month last year.

The average GTA home selling price fell 2.7 per cent year over year to $1,024,108, while the benchmark price, which tracks changes in typical property values, declined 4.3 per cent.

New property listings also weakened, falling 11.9 per cent to 14,173, while the number of homes available for sale reached 25,098.

Despite the annual slowdown, seasonally adjusted monthly sales increased modestly from September, suggesting some underlying stability in the market.

TRREB officials attributed the continued hesitation among prospective buyers to concerns about inflation, borrowing costs, Canada–U.S. trade negotiations and international economic instability.

Although lower housing prices have improved negotiating conditions for some purchasers, mortgage affordability remains a major obstacle for first-time buyers and households considering larger properties.

The real estate board suggested that greater economic certainty and a potential Canada–U.S. trade agreement could help restore consumer confidence and encourage renewed activity in Toronto’s housing market heading into 2027.