The Greater Toronto Area (GTA) resale housing market tightened in May 2026 compared to last year. Sales increased year-over-year, whereas new listings declined over the same period. As standing inventory has been absorbed, competition between buyers has likely increased in some neighbourhoods. This should see the price trend flatten and ultimately trend upwards in the months ahead.
“Spring sales have been stronger than last year, reflecting improved affordability stemming from lower selling prices and borrowing costs. Sales are forecast to improve further as we move through the second half of this year.
Recovery would be further bolstered by positive news on the trade front along with an easing of geopolitical tensions and related duncertainty,” said TRREB President Daniel Steinfeld.
“Inventory levels trended lower over the past year, but buyers continued to have substantial negotiating power through the spring, helping with affordability. Looking ahead, if sales strengthen further relative to listings, selling prices will level off and even start to grow as we move into 2027,” said TRREB Chief Information Officer Jason Mercer.
GTA REALTORS® reported 6,583 home sales through TRREB’s MLS® System in May 2026 – an increase of 6.3 per cent compared to May 2025. New listings entered into the MLS® System amounted to 17,698 – down by 18.9 per cent year-over-year.
On a seasonally adjusted basis, May 2026 home sales were up by 10 per cent month-over-month compared to April 2026 and new listings were down by 2.1 per cent – pointing to a monthly tightening of market conditions as well.
The MLS® Home Price Index (MLS® HPI) Composite benchmark was down by 6.7 per cent year-over-year in May 2026. The average selling price, at $1,069,700, was down by 4.6 per cent compared to May 2025.
On a month-over-month seasonally adjusted basis the average selling price was up slightly compared to April 2026 and the MLS® HPI Composite edged slightly lower.
“TRREB supports Bill 98, the Building Homes and Improving Transportation Infrastructure Act of 2026, which contains a simple but critical truth: if we want more attainable housing, we need to make it easier, faster, and less expensive to build homes. Many of the concrete measures contained in Bill 98 align with recommendations in TRREB’s recently released policy report, Removing Roadblocks: Tackling Municipal Barriers to Housing Supply and Affordability in Ontario,” said TRREB Chief Executive Officer John DiMichele
CONDO MARKET STATS
Greater Toronto Area (GTA) condominium apartment sales were lower in the first quarter of 2026 compared to the first quarter 2025, while active listings remained at elevated levels, albeit flat compared to last year. With sales down and available inventory holding steady year-over-year, condo buyers continued to benefit from substantial choice and negotiating power on price.
There were 3,361 condominium apartment sales reported through the Toronto Regional Real Estate Board (TRREB) MLS® System in Q1 2026 – down by 11.3 per cent compared to 3,791 sales in Q1 2025. New condominium apartment listings entered into the TRREB MLS® System totaled 11,723 in the first quarter of 2026, down by 19.4 per cent year-over-year. However, active listings at the end of the quarter remained virtually unchanged compared to the same period last year at 6,688 units.
Elevated choice in the marketplace resulted in the average condominium apartment selling price trending lower year-over-year – down by 9.1 per cent to $618,484 in Q1 2026 compared to $680,243 in Q1 2025. The average selling price in the City of Toronto was $649,330, which was above the GTA average but below the $711,258 average price recorded in the City of Toronto during the first quarter of 2025.
Lower borrowing costs and selling prices compared to a year ago improved affordability. In the months ahead, this improvement could result in increased sales. In addition, the fact that new listings entered into TRREB’s MLS® System were lower compared to Q1 2025 suggests that market conditions could tighten in the months ahead. Tighter market conditions would initially provide some support for prices and ultimately a resumption of growth beyond 2026.mf
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