If the market has felt a bit different lately, the latest data helps explain why. Recent trends point to a shift in activity that’s supporting more balanced conditions—creating added flexibility for both buyers and sellers to review inventory, evaluate pricing, and make confident, well-informed decisions.
Residential Sales Activity
The Toronto Regional Real Estate Board (TRREB) reported 3,082 home sales in January 2026, down 19.3% compared to January 2025 in the Greater Toronto Area.
With fewer transactions taking place, buyers are generally approaching decisions with more time for due diligence, while sellers benefit most from strong positioning—pricing, presentation, and marketing that clearly communicates value.
Fewer New Listings Enter the Market
New listings totalled 10,774 in January 2026, down 13.3% year-over-year.
Even with fewer new listings compared to last January, TRREB’s outlook continues to point to solid buyer choice overall—an environment that tends to reward homes that are well-prepared, competitively priced, and thoughtfully marketed.
A More Balanced Pricing Landscape
The average selling price in January 2026 was $973,289, down 6.5% compared to January 2025—helpful for buyers who’ve been waiting for a more accessible entry point.
TRREB has noted that affordability improved through 2025 as home prices and mortgage rates moved lower. This has helped position the market for a potential recovery as economic and labour-market conditions strengthen.
“The GTA housing market became more affordable in 2025 as selling prices and mortgage rates trended lower. Improved affordability has set the market up for recovery. Once households are convinced that the economy and labour market are on a solid footing, sales will increase as pent-up demand is satisfied,” said TRREB President Daniel Steinfeld.
TRREB Forecasts Stable Pricing in 2026
Looking ahead, TRREB forecasts 2026 home sales in the range of 60,000 to 70,000 transactions, with the first half of the year expected to resemble 2025 levels and the potential for improved activity later in the year as consumer sentiment strengthens. (See the latest TRREB News)
TRREB expects home prices in 2026 to stay fairly steady overall, averaging around $1.0M to $1.03M, with a softer start to the year, potentially giving way to more stable conditions later on.
A few additional takeaways from TRREB’s research:
- 22% of respondents plan to buy in 2026, and nearly half are first-time buyers.
- More inventory is expected to keep negotiating room, especially for condos.
- Rental demand is expected to stay strong, supported by immigration and renters who buy later.
Need help making sense of it all?
Whether you’re buying, selling, or simply tracking your neighbourhood across the Southern Ontario Region, The Vetere Team is here to help you interpret the numbers and plan your next steps. Reach out anytime for a strategy conversation tailored to your timeline, your property type, and your local market.