Greater Toronto home prices wiped out gains made in the first five months of 2026 in a matter of weeks. Toronto Regional Real Estate Board (TRREB) July data shows prices fell to their lowest point in over five years. Both home sales and inventory fell, but one remains near record lows while the other is near its highs. Can you guess which one is which?
Toronto Home Prices Slide To Over 5-Year Low, Down 27% From Peak
The price of a typical home across Greater Toronto.
Source: TRREB; CREA; Better Dwelling.
The price of a typical home across Greater Toronto slipped 0.7% (-$6.2k) to $934,600 in July, down 4.6% (-$45.5k) from last year. The move was only the second straight decline, but it more than wiped out the gains in the first five months of the year. After plunging 27% (-$345,200) from its March 2022 peak, home prices are now at the lowest level since January 2021.
Toronto Home Sales Pull Back, One of the Weakest Levels Ever
Greater Toronto existing home sales for July.
Source: TRREB; CREA; Better Dwelling.
Home sales across Greater Toronto pulled back slightly following three years of progress from record lows. TRREB reported 5,995 sales in July, down 0.9% (-52) from last year, which sounds minor but these were already weak levels. Last month’s sales were 30.3% (-2,600) below July 2019, with only July 2017 coming in lower between 2006 and 2020. For those who need a history refresher, July 2017 is when Ontario’s non-resident buyer tax was rolled out, and buying abruptly halted.
Toronto Inventory Remains At One of The Highest Levels On Record
Greater Toronto active listings, July.
Source: TRREB; CREA; Better Dwelling.
TRREB notes the market tightened which “sets the stage for price stability.” Inventory did pull back, but the only way their statement is true is if prices stabilized in a market with excess inventory. The board reported 14,484 new listings in July, down 17.8% (-3.1k) from last year. That might sound impressive, but context is everything when it comes to inventory.
Only six years in the past 30 have seen more new listings in July, with the sales-to-new-listings ratio (SNLR) at 37.1%, 2.5 points higher than last year. That puts the SNLR firmly in a buyer’s market, where the industry expects prices to fall. Going back to 1991, the SNLR has only come in lower once—last year.
Then there’s total inventory, which is accumulating in the face of weak sales. There were 26,100 active listings in July, down 12.1% from last year but still the third-highest since 1996. Only last year and July 2008 had more inventory in the month.
The market has improved, but it’s nowhere near anything resembling normal. Inventory is tightening, but prices haven’t moved much since the initial correction. With the region’s economy seeing a slowdown, and its young adults fleeing to other provinces, sales pulling back even further isn’t exactly surprising.
