Toronto real estate market finally showing signs of life but prices are still sliding

Toronto's real estate market showed a split picture last month as sales increased for the first time in several months while prices continued to fall, according to the latest report from the Toronto Regional Real Estate Board (TRREB).

The report found that resale market conditions across the GTA tightened compared to the same period last year, as home sales increased year-over-year and the number of new listings declined, creating a more strained supply environment.

There were 5,039 home sales through TRREB's MLS System last month, representing an increase of 1.7 per cent compared to the same period in 2025. For comparison, there were only 3,868 home sales reported in February.

At the same time, new listings dropped significantly last month to 14,442, amounting to a decline of 16.7 per cent year-over-year.

"It's encouraging to see an uptick in March home sales compared to last month and last year. This suggests that an increasing number of GTA households are looking to take advantage of improved affordability as we move into the spring market," said TRREB President Daniel Steinfeld.

On a broader scale, seasonally adjusted figures show that both sales and listings increased from February to March, with sales rising at a slightly faster pace than new supply.

Last month, the average selling price of $1,017,796 was down by 6.7 per cent compared to March 2025, and slightly higher than February's average price of $1,008,968.

Still, prices remain well below the sky-high records seen in 2022, as buyers continued to benefit from increased negotiating power.

"This explains why benchmark and average selling prices were down year-over-year," noted TRREB Chief Information Officer Jason Mercer. "However, if market conditions continue to tighten, as they did in March, selling prices could start levelling off as we move through the remainder of 2026."

Looking ahead, TRREB CEO John DiMichele says the GTA housing supply is in danger of running dry.

"The federal and provincial governments announcements on HST and development charge relief were important affordability policy initiatives designed to spur new home sales and construction," DiMichele said.

"It will be important to ensure that the right types of homes are built, namely 'missing middle' home types bridging the gap between condos and traditional single-family homes."

The last time home sales increased in the GTA was back in September, when realtors reported 5,592 home sales through TRREB's MLS System, representing an increase of 8.5 per cent compared to September 2024.