A GTA Market Update - May 2026

The Greater Toronto Area resale market continued to tighten in May 2026, marking a noticeable shift from the softer conditions we saw throughout 2025. While prices remain lower than last year, demand is strengthening — and that combination is creating a more balanced, more competitive environment as we move into summer.

Sales Are Up, Listings Are Down — A Key Turning Point

GTA REALTORS® reported 6,583 home sales in May, a 6.3% increase compared to May 2025. At the same time, new listings dropped by 18.9%, with only 17,698 homes coming to market.

This is the most important trend right now:

More buyers + fewer sellers = a tightening market.

TRREB notes that “standing inventory has been absorbed,” meaning the backlog of available homes is shrinking. When this happens, competition increases — especially in desirable neighbourhoods — and price declines begin to level off.

Prices Are Still Lower Year-Over-Year, But Stabilizing

The average selling price across the GTA was $1,069,700, down 4.6% from last May. The MLS® Home Price Index (HPI), which tracks underlying value, was down 6.7% year-over-year.

But month-to-month tells a different story:

 The average price rose slightly from April

 The HPI dipped only marginally, suggesting the downward trend is slowing

This is typical of a market in transition: prices stop falling first, then flatten, then begin to rise again.

Why Buyers Are Returning

TRREB attributes stronger spring sales to improved affordability, supported by:

 Lower selling prices compared to recent years

 Lower borrowing costs, with the Bank of Canada overnight rate at 2.3%

 A prime rate of 4.5%

 Mortgage rates that have eased slightly (e.g., 5-year fixed at 6.09%)

As confidence improves, TRREB expects sales to strengthen further in the second half of 2026.

How Different Home Types Performed

Here’s how May sales and prices broke down across the GTA:

- Detached homes:

o 3,236 sales (+9% YoY)

o Average price: $1,358,131 (4.7% YoY)

- Semi-detached homes:

o 608 sales (0.8% YoY)

o Average price: $1,067,672 (2.9% YoY)

- Townhouses:

o 1,114 sales (+4.8% YoY)

o Average price: $840,608 (7.1% YoY)

- Condo apartments:

o 1,535 sales (+4.2% YoY)

o Average price: $639,468 (6.4% YoY)

Condos remain the most affordable entry point, especially in the 905, where the average condo price is $573,531.

City of Toronto Snapshot

The City of Toronto recorded 2,377 sales with an average price of $1,108,292.

A few standout patterns:

- Toronto East remains one of the most competitive areas, with homes selling for 103% of asking on average — and some pockets (E01, E02) reaching 108–110%.

- Toronto West continues to attract strong demand, selling at 100% of asking.

- Toronto Central, with its large condo inventory, remains more balanced at 97% of asking.

Inventory Levels Show a Market in Transition

Across the GTA:

- Active listings: 26,927 (down 13.3% YoY)

- Months of inventory: 4.8

- Average days on market: 27

- Average property days on market: 42

These numbers point to a market that is no longer a deep buyer’s market, but not yet a full seller’s market either. It’s a transitional phase — often the most strategic time for both buyers and sellers.

What This Means for You

For Buyers

You still have negotiating power — but the window is narrowing. Fewer listings mean more competition, especially for well-priced homes. Some neighbourhoods (particularly in Toronto East and West) are already seeing multiple offers again. Condo prices remain soft, offering excellent opportunities for first-time buyers and downsizers.

For First- Time Buyers

This market is quietly becoming more favourable for you.

- Prices are still lower than last year, especially in the condo segment.

- Borrowing costs have eased, with the Bank of Canada’s overnight rate at 2.3%.

- More entry-level inventory is available in condos and townhouses.

- Competition is manageable in most areas — except a few hot pockets in Toronto East.

The average condo price across the GTA is $639,468, and in the 905 it’s $573,531 — some of the most accessible pricing we’ve seen in years. If you’re buying with a partner, friend, or sibling, this is a moment where the math works better than it did in 2022–2023. And with prices stabilizing month-to-month, getting in sooner may help you benefit from future appreciation.

For Sellers

The market is shifting in your favour.

Inventory is shrinking, demand is rising, and prices appear to be stabilizing. Well-prepared, well-staged homes are performing strongly. If you’re considering selling in the next 6–12 months, this is a promising moment to start planning.

For Downsizers

This is a particularly strategic time. You can sell your home in a tightening market while buying into a softer condo market. That “sell strong, buy smart” window doesn’t last forever.

For Investors

Rental demand remains high, and condo prices are attractive. With borrowing costs easing and competition increasing, 2026 may offer a rare combination of lower entry prices and improving long-term appreciation potential.

SOURCE: TORONTO REGIONAL REAL ESTATE BOARD (TRREB)