August 2026
The Greater Toronto Area housing market continued to experience tighter conditions in August 2026, with the number of homes available for sale falling noticeably compared to the same time last year. While home sales also edged lower, the decline appears to have been influenced in part by reduced inventory and less choice for buyers in certain neighbourhoods.
According to the latest data from TRREB’s MLS® System, GTA REALTORS® reported 5,057 home sales in August 2026, representing a 2.1 per cent decrease compared to August 2025. At the same time, new listings declined by 14.1 per cent year-over-year, with 12,075 properties coming to market.
The significant drop in new listings is an important factor shaping current market conditions. With fewer homes available, buyers may be facing increased competition for well-priced and desirable properties. If this trend continues, the combination of limited supply and stronger competition could put renewed upward pressure on home prices in the months ahead.
On a seasonally adjusted basis, home sales declined slightly month-over-month compared to July, while new listings increased. This suggests that although the market remains relatively tight, some additional inventory began to come onto the market as the summer progressed.
TRREB President Daniel Steinfeld noted that buyers could increasingly face a decision between waiting for greater economic certainty and purchasing before prices potentially move higher. At the same time, improving conditions for sellers could encourage more homeowners to list their properties, giving buyers greater choice and helping to balance the market.
Despite the tightening conditions, home prices remained below last year's levels. The MLS® Home Price Index (MLS® HPI) Composite benchmark was down 4.5 per cent year-over-year in August, while the average selling price reached $993,410, representing a 2.7 per cent decline from August 2025.
However, the month-over-month trend provides some early signs of stabilization. On a seasonally adjusted basis, the MLS® HPI Composite was essentially flat compared to July, while the average selling price edged higher.
Overall, the August 2026 data suggests the GTA housing market is gradually moving toward a more balanced environment. While prices remain below last year's levels, declining inventory and steady buyer demand could create greater competition in the months ahead. If supply continues to tighten, the market may be approaching a turning point where prices begin to stabilize and potentially resume growth.
Sources & Notes
i - Statistics Canada, Quarter-over-quarter growth, annualized.
ii - Statistics Canada, Year-over-year growth for the most recently reported month.
iii - Bank of Canada, Rate from most recent Bank of Canada announcement.
iv - Bank of Canada, Rates for most recently completed month.
v - Information supplied by TRREB
