Market Insights | August 2026
August saw Toronto’s housing market continue to tighten, as a 14.1% decline in new listings limited buyer choice and sales edged lower amid reduced inventory.
August saw fewer homes available for sale across Toronto, with new listings declining 14.1% year-over-year to 12,075. Home sales also edged lower, with 5,057 transactions reported through TRREB’s MLS® System, down 2.1% compared to August 2025. TRREB noted that the decline in sales was arguably linked to reduced choice in some neighbourhoods, with less inventory potentially contributing to greater competition among buyers.
The average selling price in August was $993,410, representing a 2.7% decline compared to August 2025. The MLS® Home Price Index (HPI) Composite benchmark was also down 4.5% year-over-year. On a seasonally adjusted month-over-month basis, the HPI Composite was essentially flat compared to July, while the average selling price edged higher.
TRREB expects that continued tightening of inventory and increased competition among buyers could contribute to renewed price growth in the months ahead. However, the report also notes that improving conditions for sellers could encourage more listings to come to market, giving buyers additional choice. For buyers, this may create a trade-off between waiting for greater economic certainty and purchasing before prices potentially move higher.
