According to January 2026 data from GTA REALTORS®, home sales and prices continued to cool year‑over‑year, while inventory trends suggest the market is gradually rebalancing.
Here’s what you need to know—and how to use it to your advantage.
GTA Home Sales Decline as Buyers Stay Cautious
A total of 3,082 home sales were reported in January 2026, marking a 19.3% decrease compared to January 2025. Higher borrowing costs and economic uncertainty continue to delay purchasing decisions, particularly among first‑time buyers.
At the same time, new listings reached 10,774, down 13.3% year‑over‑year, indicating that some sellers are holding off, waiting for clearer market direction.
Key takeaway: Demand remains soft, but supply isn’t flooding the market—helping prevent sharper price drops.
GTA Home Prices Continue to Trend Lower
Price data confirms a market still adjusting:
MLS® Home Price Index (HPI) Composite:
⬇ Down 8% year‑over‑year
Average GTA home price:
💰 $973,289, down 6.5% compared to January 2025
On a seasonally adjusted basis, both the MLS® HPI Composite and average selling price trended lower compared to December 2025, reinforcing the ongoing cooling trend.
For buyers, this may signal improving affordability. For sellers, accurate pricing and strong presentation are more critical than ever.
Month‑Over‑Month Snapshot: A Subtle Shift
When adjusted for seasonality:
- Home sales declined from December 2025
- New listings rose slightly, suggesting sellers are slowly re‑entering the market after the holiday lull
This early‑year pattern is typical—but in today’s market, even small changes can influence negotiating power.
What This Means for Buyers
✅ More choice compared to early 2025
✅ Less competition in many neighborhoods
✅ Greater room for negotiation
If interest rates stabilize or ease later in 2026, buyers who enter now may benefit from lower purchase prices before competition heats up again.
What This Means for Sellers
⚠ Pricing strategy matters more than ever
⚠ Over‑priced homes are lingering longer
✅ Well‑staged, well‑priced listings are still selling
Sellers who align with current market realities—and work with experienced professionals—can still achieve strong outcomes.
Looking Ahead: 2026 GTA Real Estate Outlook
The 2026 TRREB Market Outlook and Year in Review Report is now available, offering deeper insights into:
- GTA resale trends
- New home and condominium markets
- Commercial real estate performance
The report suggests continued market rebalancing, not a collapse—setting the stage for strategic opportunities throughout the year.
Final Thought from Lendworth
Whether you’re buying your first home, refinancing, or planning your next move, understanding market data is key to making confident decisions.
At Lendworth, we help GTA buyers and homeowners navigate shifting conditions with smart financing strategies built for today’s market—not yesterday’s headlines.
📩 Thinking about buying or refinancing in 2026?
Talk to a Lendworth expert today and get ahead of the market.