Home sales
in the Greater Toronto Area (GTA) fell sharply in January, with prices and transactions also down from a year earlier, marking a subdued start to 2026.
There were 3,082 homes sold through the
Toronto Regional Real Estate Board (TRREB)
last month, a 19.3 per cent decline from the 3,820 sales reported in January 2025, according to the board’s latest data.
“January’s market data reflect a continuation of a slower start to the year compared to a year ago, as affordability challenges and economic uncertainty remain top of mind for many buyers,” TRREB said in its release.
New supply also pulled back. A total of 10,774 new listings entered the MLS system in January, down 13.3 per cent year over year, pointing to a slower start to the winter market on both the demand and supply sides.
Prices trended lower as well. The MLS Home Price Index composite benchmark was down eight per cent compared with a year earlier. The average selling price was $973,289, a 6.5 per cent decline from January 2025, when the average price topped $1.04 million.
“While there are signs that some buyers are taking advantage of a broader selection of homes and more balanced conditions, home sales continue to be suppressed relative to early 2025 as market participants adapt to the current interest rate environment,” TRREB said.
On a seasonally adjusted basis, TRREB said home sales were down month over month compared with December, while new listings edged slightly higher. Both the composite benchmark and average price also trended lower from December, indicating continued price pressure at the start of the year.
Market balance tilted further toward buyers. Active listings climbed 8.1 per cent year over year to 17,975, while the average time on market rose to 45 days, up from 37 days a year earlier. The average property days on market increased to 67 days from 55, suggesting homes are taking longer to sell than they were at the same time last year.
Vaughan-based realtor Anthony De Toma said some sellers are opting to pull listings rather than compete in the slower market, choosing instead to renovate if their finances allow.
He added that buyer interest remains active in certain segments, particularly freehold homes, but pricing is critical. Homes that represent good value can still sell quickly — in some cases within 24 hours — while properties priced too high tend to linger.
The pullback in sales was broad-based across housing types. Detached home sales fell 13.6 per cent year over year, while semi-detached transactions dropped 19.2 per cent. Townhouse sales declined 23.7 per cent, and condominium apartment sales were down 26 per cent, marking the steepest percentage drop among the major segments.
Price trends also showed widespread softness. The average price for a detached home was down 7.4 per cent from a year earlier, while semi-detached prices declined 9.7 per cent. Townhouse prices were down 9.4 per cent and condo apartment prices fell 9.8 per cent year over year.
De Toma said activity appears more concentrated in entry-level freehold housing such as townhouses and semi-detached homes, where relative affordability is drawing some sidelined buyers back into the market. He said detached homes are facing more resistance and he expects condominium prices could continue to weaken.
Taken together, the January figures suggest the GTA housing market remains softer than it was a year ago.
• Email: shcampbell@postmedia.com