Toronto home sales have started the year off slowly, as buyers continue to navigate affordability challenges, economic uncertainty, and shifting interest rate conditions.
According to the board’s latest report, January home sales dropped 19.3% compared to the same month last year. The average selling price also fell, sliding 6.5% from $1.04 million in January 2025 to $973,289 last month. At the same time, the number of active listings climbed 8.1%, giving buyers more options to choose from.
“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 in a media release.
New listings also eased compared to last year. There were 10,774 new properties added to the MLS system in January, a decline of 13.3% year over year. This suggests that both supply and demand have cooled as the winter market gets underway.“
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.
More supply could lead to lower prices
With inventory levels remaining elevated, the board believes average selling prices could soften further in the months ahead. Prices may begin to stabilize later in the year if consumer confidence improves and economic conditions become clearer.TRREB president Daniel Steinfeld noted that many homeowners are still hesitant to take on long-term mortgage commitments given the uncertain outlook.
“Affordability has improved, but uncertainty continues to weigh on long-term decisions like homeownership,” said Steinfeld. “Greater economic clarity in the months ahead could restore confidence.”
For now, the market appears to be in a holding pattern as buyers, sellers, and lenders wait for clearer signals on interest rates and the broader economy. The second half of the year may provide a better indication of whether momentum will return to the Greater Toronto Area housing market.
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