According to the Toronto Regional Real Estate Board, GTA REALTORS® reported 5,995 residential sales through the MLS® System in July. That represented a modest 0.9% decrease compared with July 2025.
However, the number of new listings fell much faster.
Only 14,484 new properties entered the market during July, representing a 17.8% year-over-year decline. With fewer homes available and sales remaining relatively steady, active buyers faced more competition for the properties that were listed.
GTA Housing Supply Tightened During July
The decline in new listings is one of the most important developments in the July housing report.
When listings decrease more quickly than sales, buyers generally have fewer properties to choose from. Sellers may also have less pressure to accept heavily discounted offers, particularly in desirable GTA neighbourhoods where inventory remains limited.
On a seasonally adjusted basis, home sales increased from June to July while new listings declined. This suggests that market conditions continued to tighten as the summer progressed.
Should this trend continue into the fall, GTA home prices could begin to stabilize following the year-over-year declines experienced earlier in 2026.
GTA Average Home Price Remained Above $1 Million
The average GTA selling price in July 2026 was $1,003,956, representing a 4.5% decrease compared with July 2025.
The MLS® Home Price Index Composite benchmark declined by 4.6% over the same period.
Although prices remained lower than they were one year earlier, the monthly figures showed signs that the market may be approaching a more balanced position. The benchmark price edged higher compared with June on a seasonally adjusted basis, while the average selling price moved slightly lower.
This combination suggests that major price declines may be slowing, but conditions can vary significantly by property type and location.
What This Means for GTA Homebuyers
Buyers may still have negotiating opportunities, particularly when a property has been listed for an extended period or requires repairs. However, the sharp decline in new listings means buyers should not assume every seller will be willing to reduce their price.
Purchasers should have their financing reviewed before submitting an offer, especially when dealing with self-employment income, credit challenges, a recent job change or a property that does not meet traditional bank guidelines.
When bank financing is unavailable or cannot be completed before closing, a private mortgage in Ontario may provide a short-term financing solution based primarily on the property and available equity.
Buyers purchasing in Toronto can also review Lendworth’s guide to private mortgages in Toronto.
What This Means for GTA Homeowners
A housing market with fewer listings may also affect homeowners who are considering selling, refinancing or accessing their equity.
Homeowners who purchased at a higher price, have an upcoming mortgage renewal or need to consolidate expensive debt should review their options before financial pressure increases.
Available home equity may potentially be used to:
- Refinance an existing mortgage
- Consolidate credit cards and unsecured debt
- Pay property tax or mortgage arrears
- Complete urgent home repairs
- Fund a business or investment opportunity
- Arrange financing before selling the property
- Replace a lender that will not renew the mortgage
Homeowners considering alternative financing should understand the rates, lender fees, legal costs and repayment strategy before proceeding. Lendworth’s Ontario private mortgage guide explains how private financing works and when it may be appropriate.
Borrowers can also use the private mortgage calculator to estimate potential payments and borrowing costs.
Borrowing Costs and Economic Confidence Remain Important
Many potential purchasers are still waiting for greater certainty around interest rates, inflation, employment and the wider Canadian economy.
Improved economic data could help restore buyer confidence, particularly if borrowing costs become more predictable and home prices continue to stabilize.
However, buyers and homeowners should make financing decisions based on their own income, equity, credit and long-term plans rather than attempting to predict the exact direction of the market.
Housing Costs Extend Beyond Mortgage Rates
Municipal zoning restrictions, development charges, approval delays and property-related taxes continue to affect housing affordability throughout the GTA and surrounding communities.
These costs can limit the construction of new homes and increase the price buyers ultimately pay. Increasing housing supply will remain important as population growth continues across Toronto, Vaughan, York Region, Peel Region, Durham Region and Simcoe County.
Need Mortgage Options in the GTA?
The July 2026 housing report shows a market where inventory is declining, buyer competition is increasing and prices may be beginning to stabilize.
Whether you are purchasing a property, approaching renewal, refinancing debt or trying to access equity, arranging financing early can provide more time to compare available options.
Lendworth works with homeowners and real estate buyers throughout Toronto, Vaughan and Southern Ontario. Financing options may be available for borrowers who have home equity but do not meet traditional bank lending requirements.
Contact Lendworth today to discuss your mortgage situation and determine which options may be available.