The January market report is out!
What a winter we are experiencing. With frigid temperatures and significant snowfall across the region, the Greater Toronto real estate market has started 2026 at a slower pace.
There were 3,082 home sales reported in January, down 19.3% compared to January 2025. Active listings increased by 8.1% year-over-year to 17,975, bringing the months of inventory across all home types to 5.8 months. Months of inventory measures the pace at which homes are selling if no new listings were to come to market. As inventory levels approach six months, economists suggest the market is shifting toward buyer-friendly conditions, offering more choice and putting downward pressure on prices, improving affordability.
The average selling price was $973,289, a decline of 6.5% compared to January 2025. With the Bank of Canada recently announcing no change to interest rates, mortgage rate stability combined with declining prices is expected to encourage more buyers to re-enter the market and take advantage of current conditions.
Jason Mercer, Chief Information Officer of the Toronto Regional Real Estate Board, has noted that current inventory levels should help keep prices in check. However, he anticipates a busier second half of 2026 as affordability improves and consumer confidence begins to strengthen.
With market conditions expected to improve later this year, buyers should be actively looking for opportunities now and educating themselves on where true value exists in today’s market. As activity increases throughout the year, prices are likely to begin trending upward.
The condominium market continues to face challenges, largely due to above-average delivery of new units. Approximately 20,000 new condo units are expected by the end of 2026. Condo sales were down 26% in January compared to January 2025, with average prices declining nearly 10% to $604,759. This drop in average price is largely driven by increased sales of smaller, investor-type units. Prices for these smaller units across the Greater Toronto and Hamilton Area (GTHA) have declined to levels that are increasingly attractive to investors looking to capitalize on current market conditions.
