Toronto's housing market gains traction after months of sluggish sales
June sales rose 9.4% year-over-year as GTA real estate shows signs of recovery despite ongoing affordability concerns.
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Toronto's housing market is finally gaining momentum after months of sluggish activity. The Toronto Regional Real Estate Board reported Friday that GTA realtors logged 6,770 home sales in June through the MLS system, up 9.4% from June 2025.
The improvement marks a turning point after a slow start to the year. "After a slow start in the first quarter, we saw a marked improvement in home sales in the second quarter," said TRREB President Daniel Steinfeld. Sales growth in the first half of 2026 is already edging higher compared to the same six months in 2025, he added.
However, the gains come with caveats. New listings in June fell 12.9% year-over-year to 17,282, while the average selling price of $1,058,658 remains down 3.9% from June 2025. That said, the annual rate of price decline has slowed considerably in recent months.
TREBB's Chief Information Officer Jason Mercer suggested further momentum could reverse the downward trend. "If market conditions continue to tighten in the second half of 2026, selling prices could move in line with 2025 and eventually post some increases," he said. Such a shift could give households the confidence to re-enter the market.
Affordability remains a stubborn obstacle. TRREB CEO John DiMichele pointed to development charges as a major cost driver, noting they can account for up to 20% of a home's purchase price. "Housing affordability remains a priority for the region," he said.
