According to the Toronto Regional Real Estate Board, GTA REALTORS® reported 5,040 home sales in September, down approximately 9% from September 2025. New listings totalled 16,500, representing a 14.4% year-over-year decline.
At the same time, home prices continued to soften.
The MLS® Home Price Index Composite benchmark was down 4.7% year-over-year, while the average selling price fell 5.1% to $1,006,409.
For homeowners, buyers and investors across Toronto, Vaughan and the GTA, those numbers tell an important story.
The market is not frozen.
But many buyers are waiting.
And that can create both pressure and opportunity.
TRREB noted that there may still be substantial pent-up demand from households that intend to purchase when they feel more confident about employment, inflation and longer-term borrowing costs.
That means the GTA may currently be sitting in an unusual period where prices have softened, inventory is tighter than last year and a large group of potential purchasers remains on the sidelines.
Lower Prices Can Create Opportunity — But Financing Still Matters
A lower purchase price can make a property more attractive, but qualifying for the mortgage remains one of the biggest obstacles for many Ontario buyers.
A buyer may find the right Toronto or Vaughan property at a better price than they would have paid a year ago, yet still face difficulty obtaining the mortgage amount required from a traditional bank.
That can happen because of self-employment income, credit issues, high debt-service ratios, an unusual property or simply a bank that will not recognize enough income.
Lendworth provides private mortgage financing in Ontario for qualifying properties where conventional bank financing does not fit the transaction.
For buyers facing a firm purchase deadline, Lendworth's Need a Mortgage Fast options may also be relevant when the property and equity position support the financing.
What Does a Softer Market Mean for Existing Homeowners?
Falling prices can also affect homeowners who are not planning to move.
If your bank is using a lower appraisal value than expected, you may suddenly find that your refinance does not produce enough cash.
A homeowner who expected to access $150,000 may be told that the lower property value only supports $75,000.
That gap can become especially important when the funds are needed for debt consolidation, renovation, business expenses, taxes or another major obligation.
In that situation, a mortgage refinance or second mortgage may provide another route, depending on the amount of equity remaining in the property.
The key number is not simply whether prices are up or down.
It is the difference between the current property value and the total debt registered against it.
A homeowner with a $1.2 million property and a $450,000 mortgage may still have substantial equity even if the home would have sold for more a year earlier.
That equity can remain financially useful.
Fewer Listings Can Still Support Well-Priced Properties
New listings were down more sharply than sales in September.
That matters.
When fewer properties come to market, buyers may have less choice in certain neighbourhoods even when overall sales remain soft.
This can create a very uneven market.
Some homes may sit.
Others may attract immediate interest because they are renovated, well located or priced correctly.
For buyers, that means waiting indefinitely for the perfect market may carry its own risk.
A property that fits your needs today may not necessarily become cheaper later, especially if inventory tightens further and buyer confidence begins to return.
For existing homeowners, a slower market can also mean that selling is no longer the obvious answer when cash is needed.
If you need capital but would rather keep the property, using available equity through home equity financing may be worth reviewing before deciding to sell into a softer market.
Renovation Can Become More Important When Buyers Are Selective
A cautious real estate market also puts more pressure on property condition.
When buyers have time to compare properties, unfinished renovations, dated interiors and visible repair issues can have a larger impact on saleability.
That creates another financing opportunity.
Rather than selling a partially renovated property at a discount, an owner may choose to complete the project first.
Lendworth provides construction and renovation financing for qualifying Ontario properties where capital is needed to complete the work.
Once the renovation or construction is finished, the property may be more marketable and may also support a stronger refinance.
That is especially relevant in a market where buyers are becoming more selective.
A Slower Market Can Also Create Pressure for Sellers
Not every homeowner can simply wait.
Some have mortgages maturing.
Some have already purchased another property.
Others are carrying expensive private financing and expected their existing home to sell faster.
If your property is listed but has not sold and the mortgage deadline is approaching, the real problem may not be the sale price.
It may be time.
A short-term private mortgage can sometimes provide additional time for the property to sell without forcing the homeowner to accept a deeply discounted offer simply because the current lender must be paid out.
The financing still needs a clear exit strategy, but a slower market makes that timing discussion increasingly important.
The September Numbers Show Why Equity Still Matters
A 5.1% year-over-year drop in the average GTA selling price will attract headlines.
But for individual homeowners, the more important question is what remains after the decline.
If your property has appreciated substantially over several years and your mortgage balance has been reduced, you may still have considerable equity available.
That equity can potentially be used to refinance higher-interest debt, complete renovations, resolve a mortgage maturity problem or fund another major financial requirement.
Lendworth can assess the property, existing mortgage, current market value and financing objective to determine what direct lending options may be available.
The GTA market may be moving more slowly, but homeowners and buyers do not have to remain in a holding pattern simply because the broader market is cautious.
Sometimes the right financing structure is what allows the next move to happen.
For direct Ontario mortgage financing, review Lendworth's private mortgage options, mortgage refinancing, or request your financing options.
Lendworth — Ontario Private Mortgage Lender
905-597-1225 | Lendworth.ca
Your Equity Deserves More™.