Toronto housing market may not be completely dead just yet

After months of sluggish activity and declining prices, GTA's housing market might finally be showing signs of life again, as home sales continue to gain momentum and competition among buyers begins to return in some parts of the region.

According to the Toronto Regional Real Estate Board's (TRREB) latest Market Watch report, spring home sales have been stronger this year compared to 2025. Overall, sales have increased year-over-year, while new listings have declined over the same period.

As excess inventory has been absorbed, competition between buyers has increased in certain areas, which, over time, should flatten prices before they ultimately trend upward.

"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," said TRREB President Daniel Steinfeld. 

Source: TRREB.

While inventory levels have trended lower over the past year, Steinfeld also notes that buyers have benefited from increased negotiating power throughout the spring.

"Looking ahead, if sales strengthen further relative to listings, selling prices will level off and even start to grow as we move into 2027," TRREB Chief Information Officer Jason Mercer added. 

In the report, TRREB also emphasized the importance of Bill 98. "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," said TRREB Chief Executive Officer John DiMichele. 

Source: TRREB.

According to TRREB, GTA realtors reported just over 6,500 home sales in this past May, representing an increase of 6.3 per cent compared to the same month last year.

May 2026 home sales were up by 10 per cent month-over-month compared to April, and new listings were also down by 2.1 per cent, which, TRREB notes, indicates a tightening of market conditions.

The average selling price was $1,069,700 last month, representing a decline of 4.6 per cent when compared to May 2025. For comparison, the average selling price was $1,051,969 this past April.