TORONTO — The real estate market in the Greater Toronto Area remains under pressure. In January, home sales fell 19.3 percent year-on-year (compared with January 2025), while the average price dropped 6.5 percent to $973,289, falling below the $1 million mark for the first time since 2021. More specifically, the average price of detached homes fell 7.4 percent to $1,277,915, while condominiums experienced an even sharper decline of 9.8 percent to $604,759. 

According to the Toronto Regional Real Estate Board (TRREB), the weakness in sales and prices is expected to continue at least through the first half of the year, before rebounding later.

Data released Wednesday by the regional real estate board (here the links to the whole report and more insights) show a market characterized by weak demand and elevated supply. Transactions totaled 3,082 units, while active listings increased 8.1 percent, reaching 17,975. The average time a property stays on the market also lengthened, rising 21.6 percent to 45 days compared with a year ago.

TRREB says that the abundant supply will continue to put downward pressure on prices in the first half of 2026, while a possible stabilization could occur in the second half of the year, provided consumer confidence improves.

“The housing market reflects the tension many households are feeling as we look ahead to 2026,” said board president Daniel Steinfeld in a news release. “Greater economic clarity in the months ahead could restore confidence and help unlock demand that has been building for several years.”

An Ipsos survey commissioned by TRREB confirms the cautious mood: homebuying intentions in the Greater Toronto Area for 2026 have dropped five percentage points, to 22 percent.

With interest rates not expected to fall further, the board emphasizes that any improvements in affordability will come primarily through further price adjustments. However, for the year as a whole, TRREB forecasts an average home price between $1 million and $1.03 million, indicating that prices are still expected to rise.

The pic above is the photo of the page with the TRREB report (https://trreb.ca)