Toronto Real Estate Market Watch - June 2026

The Greater Toronto Area (GTA) housing market continued to show encouraging signs of recovery in June 2026, with home sales increasing significantly while new listings declined. These shifting market dynamics indicate a gradual tightening of inventory and suggest that buyer confidence is returning after a slower start to the year.

According to the latest market statistics released by the Toronto Regional Real Estate Board (TRREB), 6,770 homes were sold through the MLS® System in June 2026, representing a 9.4% increase compared to June 2025. At the same time, 17,282 new listings entered the market, marking a 12.9% decrease year-over-year.

The combination of stronger sales activity and fewer new listings has begun to re-balance the market, reducing excess inventory and creating more competition among buyers.

A Market Transitioning Toward Balance

The second quarter of 2026 demonstrated a notable improvement in market activity following a slower first quarter. This aligns with TRREB's earlier forecast that 2026 would be "a year of two halves," with stronger performance expected during the latter half of the year.

On a seasonally adjusted basis, June home sales increased compared to May, while new listings declined month-over-month. These trends suggest that market conditions have continued to tighten throughout the spring.

As inventory levels gradually normalize, buyers who previously delayed purchasing due to uncertainty are beginning to re-enter the market. Continued improvements in consumer confidence and affordability could further support housing demand through the remainder of 2026.

Home Prices Showing Signs of Stabilization

While home prices remain below last year's levels, the pace of decline has continued to slow.

In June 2026:

The average GTA home price was $1,058,658, a 3.9% decrease compared to June 2025.

The MLS® Home Price Index (HPI) Composite Benchmark declined 5.4% year-over-year.

Despite these annual declines, both the average selling price and the MLS® HPI Composite recorded modest month-over-month increases on a seasonally adjusted basis, suggesting that prices may be beginning to stabilize.

If inventory continues to tighten and demand strengthens during the second half of the year, the market could see prices return closer to 2025 levels, with the potential for modest price appreciation.

Affordability Remains an Important Focus

Affordability continues to be one of the most significant challenges facing GTA homebuyers.

TRREB has highlighted the impact of municipal development charges on housing costs. These charges help fund local infrastructure but can account for as much as 20% of the purchase price of a new home, contributing to higher ownership and rental costs.

The proposed Canada–Ontario Development Charge Reduction Program has been identified as a potential solution to help lower upfront housing costs by reducing these charges, making homeownership more attainable for buyers while supporting new housing development.

What This Means for Buyers

For buyers, current market conditions continue to offer opportunities.

Although competition has increased compared to earlier this year, inventory remains healthier than during the highly competitive markets of previous years. Buyers continue to benefit from greater selection while prices remain below recent peaks. Those who have been waiting on the sidelines may find that today's market provides a favourable balance between choice and pricing before competition intensifies.

What This Means for Sellers

For sellers, improving market conditions are encouraging.

With sales increasing and fewer homes entering the market, well-priced and well-presented properties are attracting greater buyer interest. As inventory continues to tighten, sellers may benefit from stronger negotiating positions and improving sale prices in the months ahead.

Proper pricing and effective marketing remain essential to achieving the best possible outcome.

Looking Ahead

The GTA housing market appears to be entering a more balanced phase as 2026 progresses. Stronger sales, declining new listings, and stabilizing prices all point toward improving market fundamentals.

While affordability challenges remain, continued demand, limited new supply, and improving consumer confidence could support further market strengthening throughout the second half of the year.

Whether you are buying, selling, or investing, understanding these evolving market trends is essential for making informed real estate decisions.

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References

Toronto Regional Real Estate Board. (2026, July 3). GTA REALTORS® release June 2026 housing market statistics. Toronto Regional Real Estate Board.

Toronto Regional Real Estate Board. (2026). Market Watch June 2026. Toronto Regional Real Estate Board.

Toronto Regional Real Estate Board. (2026). MLS® Home Price Index (HPI). Toronto Regional Real Estate Board.