Welcome to this months Market Stat blog!

Even though we got hit with a polar vortex to kick off 2026, the Toronto real estate market didn’t stop moving. While the weather outside was freezing, the market quietly shifted into something many buyers have been waiting years to see… change! A market that continues to rebalance and for first-time buyers and patient movers, this could be your moment.

Current Market Conditions

According to the latest GTA real estate data, 3,082 home sales were reported in January 2026, down 19.3% compared to this time last year. The average home price now sits at $973,289, that’s a major shift! That is down 6.5% year-over-year, marking the lowest average price we’ve seen in many years.

The MLS HPI Composite benchmark is down 8% since last January, reinforcing that pricing across housing types has adjusted meaningfully, another sign that the market is settling into a calmer, more balanced rhythm.

Link below for previous Toronto Housing Market Reports

• Toronto Housing Market Report – December 2025
• Toronto Housing Market Report – November 2025
• Toronto Housing Market Report – October 2025
• Toronto Housing Market Report – September 2025

Demand and Interest Rates

Buyer demand in January remained cautious but steady. While sales were down from December, new listings edged slightly higher, giving buyers more choice and negotiating power. For anyone who’s been waiting to enter the market, especially first-time home buyers, this environment is a breath of fresh air. Less competition, more time to think, and sellers who are more open to realistic offers and conditions.

Buyers are taking their time, running the numbers, and making confident decisions rather than rushed ones. That’s a powerful shift from the frenzy of past years. If you’ve been watching from the sidelines thinking, “Maybe when prices come down”, this is exactly what that looks like.

Important: Next Rate Announcement scheduled for March 18, 2026.

Supply of Homes

January saw 10,774 new listings hit the Market, down 13.3% from last year, but still enough to keep inventory levels comfortable for buyers. With fewer buyers competing and more thoughtful listing strategies required, sellers can no longer rely on demand alone. Homes need to be priced right and presented well to stand out.

Have any Questions: Ask us how to maximize your home’s value and showcase it to stand out in today’s market!

Market Outlook

So, how is the Toronto real estate market shaping up as we move into another month in 2026?

The picture is one of opportunity and stability. Prices have corrected, affordability is improving, and buyers finally have leverage again. This is not a market driven by panic or pressure, it’s driven by preparation and patience. Those who act thoughtfully now may look back on early 2026 as a turning point.

Key Takeaways

• GTA home sales January 2026: 3,082 (-19.3% YoY)
• New listings: 10,774 (-13.3% YoY)
• Average home price: $973,289 (lowest in years, -6.5% YoY)
• MLS® HPI Composite: -8% YoY
• Month-over-month trend: Sales and prices down, listings slightly up