The Greater Toronto Area (GTA) real estate market continued to stiffen in May 2026 as buyer activity strengthened. Sales increased compared to the same time last year, while fewer properties came to market. This reduced available supply and created more competition in some neighbourhoods. Although buyers continued to benefit from improved affordability compared to 2025, market conditions became noticeably more balanced through the month.
The trend was even more apparent when compared to April. Sales increased more than New Listings, suggesting that available inventory is being absorbed more quickly than earlier in the year. While average selling prices remained below May 2025 levels, they edged slightly higher month over month, suggesting a market that may be moving toward price stabilization after an extended period of adjustment.
Here are the detailed statistics from May:
GTA
Average Sales Price
April 2026 to May 2026: $1,051,969 to $1,069,700 (+1.7%).
May 2025 to May 2026: $1,120,716 to $1,069,700 (-4.6%).
Despite the tightening market, affordability remained improved compared to last year. The average GTA selling price was down 4.6 percent year over year. However, Average Sales Prices increased slightly compared to April, suggesting that downward pricing pressure may be easing.
Total Sales
April 2026 to May 2026: 5,946 to 6,583 (+10.7%).
May 2025 to May 2026: 6,195 to 6,583 (+6.3%).
Total Sales in the GTA continued to strengthen in May 2026, up 10.7 percent from April as the spring market gained momentum. Sales were also up 6.3 percent year-over-year, suggesting that improving affordability and growing buyer confidence are encouraging more households to move forward with their purchasing plans.
New Listings
April 2026 to May 2026: 17,097 to 17,968 (+5.1 %).
May 2025 to May 2026: 21,830 to 17,968 (-18.9%).
Active Listings
April 2026 to May 2026: 25,110 to 26,927 (+7.2%).
May 2025 to May 2026: 31,047 to 26,927 (-13.3%).
New Listings in the GTA increased by 5.1 percent from April to May 2026 as more sellers entered the market during the spring season. However, both New and Active Listings remained significantly lower than a year ago, down 18.9 percent and 13.3 percent, respectively, indicating that inventory continues to tighten and that available supply is being absorbed more quickly than in 2025.
Toronto
Average Sales Price
April 2026 to May 2026: $1,091,761 to $1,108,292 (+1.5%).
May 2025 to May 2026: $1,155,616 to $1,108,292 (-4.1%).
Average selling prices in the City of Toronto increased by 1.5 percent from April to May, but despite this month-over-month increase, prices remained 4.1 percent lower than May 2025 levels. Affordability has improved compared to last year, even as market conditions constrict.
Total Sales
April 2026 to May 2026: 2,312 to 2,377 (+2.8%).
May 2025 to May 2026: 2,315 to 2,377 (+2.7%).
The City of Toronto saw home sales increase by 2.8 percent from April to May, indicating sustained buyer activity as the spring evolved. Sales were also up 2.7 percent compared to May 2025, suggesting that affordability and tighter market conditions are gradually supporting stronger demand in the city.
New Listings
April 2026 to May 2026: 6,136 to 6,401 (+4.3%).
May 2025 to May 2026: 7,888 to 6,401 (-18.9%).
Active Listings
April 2026 to May 2026: 9,260 to 9,916 (+7.1%).
May 2025 to May 2026: 11,705 to 9,916 (-15.3%).
New Listings in the City of Toronto increased by 4.3 percent from April to May 2026 as additional properties came to market. However, both New and Active Listings remained well below May 2025 levels, down 18.9 percent and 15.3 percent, respectively, signifying that inventory continues to tighten and that buyers are gradually absorbing available supply more quickly than a year ago.
SNLR – Sales to New Listings Ratio (April to May) – The number of Total Sales that occur (supply coming off the market) to New Listings coming on (supply coming onto the market).
GTA: 34.6% to 35.7%
City of Toronto: 35.7% to 36.6%
= Buyer’s Territory
40-60% indicates a balanced market, and under 40% is buyer’s market territory. We’ve been in this range in the GTA since August 2023. Overall, buyers currently have more leverage and opportunities than sellers.
Outlook
The GTA market continues to move toward more balanced conditions as 2026 progresses. Buyers still have opportunities to negotiate in many areas, but declining inventory and strengthening sales activity are gradually reducing the leverage that defined much of the past year. If these trends continue through the second half of 2026, the market could see further price stabilization and increased competition, particularly in neighbourhoods with limited supply and strong buyer demand.
What does the fast-approaching summer bring for your real estate plans? I can help guide you with your best approach!
Thinking of moving to the next stage? Let’s chat. Send me an email (hillary@hillarylane.ca) or text/phone (416-882-4707).
