The October market report is out!
As we get deeper into the fall market and closer to the December holidays, uncertainty surrounding inflation, interest rates, and the economy continued to impact buyer confidence in the Greater Toronto Area (GTA) housing market in October. While monthly mortgage payments on an average-priced home have increased slightly compared to a year ago, affordability remains considerably better than it was in 2023 and 2024.
There were 5,603 home sales in October 2026, representing a 7.9% decrease compared to October 2025. New listings totalled 14,173, down 11.9% year-over-year and total active listings of all home types were down 10% compared with October of last year. The months of inventory, at 4.47, represents what economists consider a balanced market for buyers and sellers. More than six months indicates a buyer's market and less than four indicates a seller's market.
On a seasonally adjusted basis, both sales and new listings increased compared to September 2026, suggesting some improvement in market activity heading into the fall.
The recent U.S. midterm election results provided some optimism that greater economic certainty may lie ahead. With the possibility of a Canada-U.S. trade agreement and an eventual resolution to the conflict in the Middle East, there is hope that economic uncertainty will begin to ease, consumer confidence will strengthen and interest in homeownership will improve as we move into 2027.
Home prices continued to trend lower compared to last year. The average selling price declined 2.7% to $1,024,108. However, on a seasonally adjusted basis, the average selling price edged higher compared to September.
Buyers continued to benefit from greater negotiating power and more favourable pricing conditions over the past year. Although borrowing costs have increased slightly with inflation, lower home prices have helped offset some of that impact, keeping monthly mortgage payments more manageable. While monthly mortgage payments on an average-priced home have increased slightly compared to a year ago, affordability remains considerably better than it was in 2023 and 2024.
Looking ahead, while the ownership market continues to experience some short-term fluctuations, population growth across the GTA will remain an important factor in housing demand. Government initiatives, including HST rebates and reductions in development charges, will help encourage additional housing supply and provide more options for both buyers and renters in the coming years.
As we move toward the end of 2026, the GTA housing market continues to offer opportunities for both buyers and sellers. Buyers can take advantage of more negotiating power, greater choice and improved affordability compared to recent years, while sellers who price their homes appropriately can still achieve successful results in a balanced market. If you are considering buying or selling, now is a good time to review your options and develop a strategy for the months ahead.
