Weekly Real Estate News
Summary
Greater Toronto Area home sales fell 9% year over year in September while prices and new listings also declined, according to TRREB.
Greater Toronto Area home sales fell 9% from a year earlier in September as prices continued to decline, but an even sharper pullback in new listings reduced some of the inventory pressure facing sellers.
The Toronto Regional Real Estate Board reported 5,040 home sales through its MLS system during the month, about 500 fewer than in September 2025. New listings fell 14.4% year over year to 16,500.
The average selling price declined 5.1% from a year earlier to C$1,006,409, while TRREB’s MLS Home Price Index composite benchmark was down 4.7%.
Listings are falling faster than sales
The decline in new listings matters because Toronto’s housing market has spent much of the recent slowdown dealing with elevated inventory and buyer caution. A faster contraction in listings than in sales can gradually tighten market conditions even while transaction volume remains weak.
That does not mean the market has returned to seller control. Prices remain below year-earlier levels, and affordability continues to constrain demand after an extended period of high borrowing costs.
Reuters reported that seasonally adjusted sales fell 7.8% from August, the largest monthly decline since February. Monthly figures can be volatile, but the September drop reinforces the weakness visible in the year-over-year sales total.
Toronto’s experience is relevant beyond Canada because it shows how lower transaction activity, high financing costs and accumulated inventory can interact in a major metropolitan housing market. A reduction in new supply can stabilize the balance between buyers and sellers without immediately producing higher prices or stronger sales.
The next several months will show whether September’s listing decline becomes a sustained tightening trend or simply reflects sellers stepping back during a weak demand environment.
