Toronto Housing Market Report – September 2026

Welcome to this month’s market update!

Summer is starting to wind down, and the GTA real estate market is giving us plenty to talk about! Knowing how to navigate and staying informed is more important than ever as things are constantly changing.

Current Market Conditions

The GTA recorded 5,057 home sales in August, compared to 5,995 sales in July. While the pace slowed during the summer months, the market is still not stopping. The average selling price was $993,410, down from $1,003,956 in July. This keeps the average home price just under the $1 million mark, giving buyers a little more breathing room when it comes to affordability.

The MLS Home Price Index Composite Benchmark was down 4.5% year-over-year in August 2026, showing that prices continue to adjust as the market finds a more balanced pace.

Homes continue to spend more market, with days on market increasing from 45 days in July to 51 days in August.

Link below for previous Toronto Housing Market Reports

• Toronto Housing Market Report – August 2026
• Toronto Housing Market Report – July 2026
• Toronto Housing Market Report – June 2026

Demand and Interest Rates

Buyer activity may not be moving at the same pace we saw in previous years, but that doesn’t mean buyers have disappeared! Today’s buyers are taking their time, comparing options, negotiating carefully and making decisions based on what works best for them.

And with the Bank of Canada holding its key interest rate at 2.25%, borrowing costs remain relatively predictable for buyers and homeowners. Brining more optimism and comfortability to the table.

Next Bank of Canada Interest Rate Announcement: October 28, 2026

Supply of Homes

There were 24,482 active listings in August, compared to 26,098 in July. While inventory dipped slightly from the previous month, likely as many people took advantage of the summer fun and stepped away from the market, there is still a much wider selection of homes to choose from than they have had in many recent years.

For sellers, this means one thing, standing out matters! With more choices available, homes that are priced strategically, presented beautifully, and marketed properly are the ones more likely to catch buyers’ attention.

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

Market Outlook

August continued to show us that the GTA market is moving toward a more balanced and thoughtful environment. Buyers have more choice and time to make decisions, while sellers need the right strategy to compete in a market where buyers are doing their homework.

Key Takeaways

Home Sales: 5,995 (July) → 5,057 (August)
Active Listings: 26,098 → 24,482
Average Selling Price: $1,003,956 → $993,410
Days on Market: 45 → 51 days
MLS® HPI Composite Benchmark: Down 4.5% year-over-year
Bank of Canada Interest Rate: Holding steady at 2.25%
Next Rate Announcement: October 28, 2026