Toronto housing market is finally waking up after months of sluggish sales

Following months of sluggish activity, Toronto's housing market is finally gaining some traction, thanks to increased home sales recorded in June, according to a new real estate report.

The Toronto Regional Real Estate Board (TRREB) released its monthly Market Watch report for June on Friday, revealing that housing market conditions continued to improve throughout the GTA last month. 

Although new listings declined in June, sales grew year-over-year, edging higher during the first half of 2026 compared to the first six months of 2025. 

"After a slow start in the first quarter, we saw a marked improvement in home sales in the second quarter of this year. This result followed TRREB's 2026 outlook, which called for a year of two halves," said TRREB President Daniel Steinfeld.

"We expect accelerating transactions and more competition between buyers in the last six months of the year, helping to satisfy pent-up demand and ultimately resulting in renewed price growth." 

Source: TRREB.

Although the average selling price was still down year-over-year in June, the annual rate of decline also receded over the past few months, according to TRREB's Chief Information Officer Jason Mercer.

"If market conditions continue to tighten in the second half of 2026, selling prices could move in line with 2025 and eventually post some increases. This would give an increasing number of households the confidence to move back into the marketplace," Mercer added. 

Overall, GTA realtors reported 6,770 home sales through TRREB'S MLS System last month, representing an increase of 9.4 per cent compared to June 2025. On the other hand, new listings entered last month amounted to 17,282, which is down by 12.9 per cent year-over-year. 

Source: TRREB.

"Housing affordability remains a priority for the region. Development charges, while essential to funding local infrastructure, have substantially increased the upfront cost of housing delivery," TRREB CEO John DiMichele concluded. 

"This, in turn, contributes to higher purchase prices and rental costs as they can amount to up to 20 per cent of a home's purchase price."

The average selling price of $1,058,658 was also down by 3.9 per cent compared to the same month in 2025.