Toronto home sales tick higher in October

Greater Toronto Area home sales rose for the first time in three months in October 2026, as lower selling prices helped offset higher borrowing costs and supported affordability. On a seasonally adjusted basis, sales increased 1.2% from September to 5,274 units, reversing two consecutive monthly declines. In unadjusted terms, 5,603 homes changed hands during the month.

Despite the monthly uptick, sales remained below year-earlier levels. Transactions were down 7.9% compared with October 2025, underscoring that many potential buyers are still cautious. The modest improvement suggests some buyers re-entered the market as prices stabilized and monthly payment burdens eased relative to recent years.

Home prices in the GTA showed a mixed pattern in October. The MLS Home Price Index composite benchmark, intended to capture the value of a typical home, was down 4.3% year-over-year. The average selling price across all home types was $1,024,108, a decline of 2.7% from a year earlier.

On a seasonally adjusted basis, both the composite benchmark and the average selling price edged higher compared with September, signaling a slight firming in prices after earlier softness. The board’s seasonally adjusted home price index reading stood at C$928,800. Jason Mercer said buyers have retained substantial negotiating power on price over the past year, contributing to lower selling prices that temper the impact of higher interest rates on monthly mortgage payments.

Supply indicators also moved lower year-over-year. New listings in October totaled 14,173, down 11.9% from October 2025, while active listings fell 10%, leaving 25,098 homes available for sale across the region. The Greater Toronto Area includes the city of Toronto and four surrounding regional municipalities, making it Canada’s largest urban housing market.

Market conditions were shaped by uncertainty around inflation, borrowing costs and the broader economy, which kept many prospective buyers on the sidelines. While monthly mortgage payments for an average priced home have edged up compared with a year ago, they remain more affordable than in 2023 and 2024. This combination of softer prices and improved relative affordability appears to have encouraged some buyers back into the market, even as others continue to wait for greater economic clarity.