August 18, 2026 | Buying
The Greater Toronto Area (GTA) resale housing market continued to shift in July, with market conditions tightening compared to this time last year. While home sales were relatively steady, the number of new listings entering the market declined significantly, giving active buyers fewer options and creating more competition among purchasers.
According to the Toronto Regional Real Estate Board (TRREB), GTA REALTORS® reported 5,995 home sales through TRREB’s MLS® System in July 2026, representing a modest 0.9% decrease compared to July 2025. At the same time, 14,484 new listings came to market, down a notable 17.8% year-over-year.
The result was a market where sales accounted for a larger share of available inventory. On a seasonally adjusted basis, sales increased month-over-month from June, while new listings declined, indicating that market conditions continued to tighten through the summer.
What Does This Mean for Buyers and Sellers?
For buyers, the reduction in new listings could mean more competition for well-priced, desirable homes. After a period where buyers have generally had more negotiating power, the shift in the sales-to-new-listings balance is something to watch closely.
TRREB President Daniel Steinfeld noted that buyers may find there is less room to negotiate if current trends continue, with prices potentially beginning to stabilize compared to last year. Many prospective buyers remain on the sidelines, waiting for greater confidence in the housing market and broader economy, particularly as they look for more clarity around tariffs, inflation and borrowing costs.
Despite the continued uncertainty, there are also some encouraging economic indicators. TRREB Chief Information Officer Jason Mercer pointed to recent economic growth and employment figures that came in stronger than expected. If consumer confidence continues to improve and home prices stabilize heading into the fall, we could see more buyers re-enter the market.
GTA Home Prices in July
Home prices remained below last year’s levels, although there are early signs that the market may be approaching a period of stabilization.
The MLS® HPI Composite benchmark price was down 4.6% year-over-year in July, while the average selling price was $1,003,956, representing a 4.5% decrease compared to July 2025.
Interestingly, on a seasonally adjusted month-over-month basis, the MLS® HPI Composite benchmark edged higher compared to June, while the average selling price was slightly lower. This suggests that while prices remain softer than a year ago, the market may be beginning to find its footing.
Looking Ahead to the Fall
The big question heading into the fall is whether the tightening trend continues.
With fewer new listings coming onto the market and sales remaining relatively stable, buyers may see less negotiating room and increased competition, particularly for homes that are well-priced and move-in ready. At the same time, sellers will want to remain realistic about pricing, as overall values are still below 2025 levels and affordability continues to be influenced by borrowing costs.
Beyond market conditions, housing supply and affordability remain major issues across the GTA and Simcoe County. TRREB CEO John DiMichele highlighted restrictive zoning, outdated regulations, taxes and fees, and lengthy approval timelines as factors contributing to the cost of housing and limiting the supply of attainable homes.
Our takeaway
July’s numbers point to a market that is gradually becoming more balanced and competitive for Buyers. While it’s too early to call a major shift, the combination of fewer new listings, relatively steady sales and improving month-over-month price indicators is worth watching closely as we move into the fall.
For buyers and sellers, the broader market statistics are only part of the story. Local conditions can vary significantly by neighbourhood, property type and price point, so understanding what’s happening in your specific area is essential when making a real estate decision.