Deluxe Avenues says Toronto market is softer on prices, tighter on supply

Deluxe Avenues has published a 2026 report on Toronto and the GTA housing market, drawing on TRREB, CREA and Bank of Canada data. The report says sales are improving in some segments even as prices remain below year-earlier levels and listings tighten.

Why it matters: - Buyers and sellers in Toronto and the GTA are navigating a market with lower prices, better sales activity in some categories and fewer homes coming to market. - Borrowing costs remain a key factor after the Bank of Canada held its overnight rate at 2.25% on Sept. 2, 2026. - The report frames current conditions as useful for evaluating affordability, timing and property-specific differences across the region.

What happened: - Deluxe Avenues published its 2026 Toronto and Greater Toronto Area Residential Market Report. - The report was prepared by the Deluxe Avenues Research Desk. - The analysis uses recent data from the Toronto Regional Real Estate Board, the Canadian Real Estate Association and the Bank of Canada. - The report reviews home prices, transactions, inventory, condominium conditions and borrowing costs across the GTA. - The report says the GTA market is showing lower year-over-year pricing, improving activity in several property categories and fewer new listings.

The details: - TRREB reported 5,057 residential sales through the MLS® System in August 2026, down 2.1% from August 2025. - New listings totaled 12,075 in August 2026, a 14.1% year-over-year decline. - The MLS® Home Price Index Composite benchmark was 4.5% below August 2025. - The average GTA selling price was $993,410 in August 2026, down 2.7% from a year earlier. - On a seasonally adjusted basis, the benchmark was essentially unchanged from July. - On a seasonally adjusted basis, the average selling price rose modestly from the previous month. - TRREB said reduced inventory and stronger buyer competition could support renewed price growth if current conditions continue. - CREA reported 19,269 GTA residential sales in the second quarter of 2026, up 7.4% from the same quarter in 2025. - Detached-home sales increased 9.0% in Q2 2026. - Condominium apartment transactions increased 9.1% in Q2 2026. - CREA reported a Q2 median detached-home price of $1.175 million, down 4.1% from a year earlier. - CREA reported a Q2 median condominium apartment price of $541,000, down 8.9% from a year earlier. - TRREB reported 4,783 condominium apartment transactions in Q2 2026, up 8.8% year over year. - New condominium listings fell 19.0% in Q2 2026. - Active condominium listings fell 15.4% in Q2 2026. - The average GTA condominium selling price was $634,972 in Q2 2026, down 7.5% from Q2 2025. - In Toronto, the average condominium selling price was $667,916 in Q2 2026, compared with $717,403 a year earlier. - The Bank of Canada kept its target overnight rate at 2.25% on Sept. 2, 2026. - The full report includes underlying statistics, market context and source references.

Between the lines: - The report points to a market that is not uniformly recovering. - Sales gains are appearing in quarterly data even as annual price comparisons remain negative. - Falling listings and active inventory suggest less supply, which can shift leverage toward buyers and later tighten conditions for buyers if demand keeps improving. - Deluxe Avenues said the report does not identify a precise market bottom. - The report does not forecast guaranteed price appreciation or recommend buying based on timing alone.

What's next: - Deluxe Avenues says prospective purchasers may want to weigh pricing, transaction trends, inventory and borrowing costs together. - Market conditions will continue to vary by municipality, neighborhood, property type and price range. - Individual affordability, financing terms, ownership costs and planned holding period remain central to purchase decisions. - The report’s next signal to watch is whether lower listings and stronger sales translate into firmer pricing in coming months.

The bottom line: - Toronto’s housing market looks mixed, with softer annual prices but improving sales and tighter supply in key segments.