Greater Toronto real estate’s moving fast once again, but not in the direction the industry hoped. Toronto Regional Real Estate Board (TRREB) data shows sales fell in August, while inventory has accumulated to one of the highest levels on record. The combination has produced the sharpest price drop of 2026.
Toronto Real Estate Prices Back To Early 2021 Levels
The price of a typical home across the Greater Toronto region.
Source: TRREB; Better Dwelling.
The price of a typical home slipped 0.9% (-$8.7k) to $925,900 in August, marking the sharpest monthly move this year. Prices are now 4.5% (-$43.2k) lower than last year and 27.7% (-$353.9k) below the March 2022 record high. Home prices in the region are now at their lowest level since January 2021.
Toronto Home Sales Remain Unusually Weak, 2nd Worst August Since 2000
Total home sales across TRREB in August.
Source: Better Dwelling; TRREB; CREA.
Home sales came in slightly weaker than last year, falling 3.0% (-154) to 5,060 units in August 2026. In general, home sales in 2026 have seen a minor pullback from last year. However, since sales are falling from already weak volumes, it is worth paying attention to. Last month’s sales marked the second-weakest volume for August since 2000, only behind 2024.
There were 12,080 new listings in August, 14.0% (-2.41k) lower than last year. It’s a sharp drop, but worth noting August isn’t typically a very big month for new listings. Last year was the second-highest month on record for new listings, so a pullback was expected. Even with this firming, the sales-to-new listings ratio (SNLR) remains just 37.5%, still in the territory of a buyer’s market—where prices are expected to fall.
Toronto Hasn’t Had This Many Homes For Sale Since 2008
Total active listings of homes for sale across TRREB in August.
Source: Better Dwelling; TRREB; CREA.
The inflow of new listings may be underestimating the downward pressure on prices, though. Total active listings of homes for sale came in at a whopping 24,480 in August, up 9.0% (+2.0k) from last year. The accumulation of unsold inventory has built up to the point that Toronto hasn’t seen this many homes for sale in August since 2008, 18 years ago. Then there’s the epic inflow of new supply.
There’s little doubt that housing in Greater Toronto is still in a downturn. Those expecting a turnaround any day now are a bit on the optimistic side as that would make it roughly half the length of typical corrections of this scale.
Even with prices having made an aggressive correction, they remain very much out of reach for buyers. This is especially true for early career professionals who should be stepping onto the property ladder for the first time. However, in the current environment, the region is seeing that key demographic leave en masse for more affordable regions, a problem that may extend the market lull if not addressed.
