The latest data from the Toronto Regional Real Estate Board shows that both sales and prices moved lower as buyers remain cautious and economic uncertainty continues to influence the market.
Home sales dropped 15.8% compared to last year, with a little over 5,000 transactions recorded. Sales also slipped slightly from October on a seasonally adjusted basis. Condos saw the biggest drop in activity with sales down more than 20%, and detached, semi detached, and townhouses also saw double digit declines.
The average selling price for a home in the GTA came in at $1.03 million, which is 6.4% lower than last year. TRREB’s Home Price Index showed a 5.8% decline in the value of a typical home. Since the peak in February 2022, the average price has now fallen by 22%, creating one of the longest correction periods the market has seen in years.New listings were down 4% year over year with just over 11,000 homes coming to market. Even with fewer new listings, active inventory remains high and is up 16.8% from last year.
Many homes are staying on the market longer, which continues to create more favourable conditions for buyers.Buyer demand remains soft because many people believe prices could fall even further. TRREB notes that borrowing conditions have improved slightly due to recent cuts to interest rates, but confidence in the broader economy and job stability is still a major concern. Until buyers feel more secure about long term financial conditions, many are choosing to wait.
The GTA housing market is heading into 2026 with lower prices, slower sales, and higher inventory. If economic confidence improves, activity could start to pick up. For now, buyers are taking their time while sellers adjust to a market that is very different from the peak years before 2022.