As the Greater Toronto Area real estate market enters 2026, January data indicates that the market continues to adjust rather than rebound. Sales activity slowed, prices declined across all housing types, and buyers’ negotiating power increased as inventory remained above normal levels. While these conditions may feel familiar to much of 2025, January’s figures help clarify where the market currently stands and what buyers and sellers should realistically expect in the upcoming months.
Here are the detailed statistics from January:
GTA
Average Sales Price
December 2025 to January 2026: $1,006,735 to $973,289 (-3.3%).
January 2025 to January 2026: $1,041,171 to $973,289 (-6.5%).
The Average Selling Price across the GTA declined from December to January, reflecting the typical seasonal slowdown combined with ongoing buyer caution. But it’s also the first time since January 2021 that the Average Sales Price in the GTA has fallen below a million dollars. Compared to this time last year, prices remain notably lower, reinforcing that affordability has improved and that the market continues to favour buyers as 2026 begins.
Total Sales
December 2025 to January 2026: 3,697 to 3,082 (-16.6%).
January 2025 to January 2026: 3,820 to 3,082 (-19.3%).
Total Sales in the GTA fell sharply from December to January, which is consistent with seasonal patterns; however, it should also be noted that while the weather doesn’t typically significantly affect housing real estate numbers, multiple snowstorms and frigid temperatures likely kept some buyers at home in the warmth and off the roads. Year-over-year sales remain significantly lower, underscoring that many households are still waiting for greater economic certainty before making long-term purchasing decisions.
New Listings
December 2025 to January 2026: 5,299 to 10,774 (+103.3%).
January 2025 to January 2026: 12,420 to 10,774 (-13.3%).
Active Listings
December 2025 to January 2026: 17,005 to 17,975 (+5.7%).
January 2025 to January 2026: 16,621 to 17,975 (+8.1%).
New Listings rose sharply from December to January, reflecting the typical seasonal increase in sellers entering the market at the start of the year. At the same time, Active Listings continued to increase both month over month and year over year, keeping overall inventory elevated and reinforcing a market environment that gives buyers more choice and negotiating leverage across much of the GTA.
Toronto
Average Sales Price
December 2025 to January 2026: $986,542 to $948,698 (-3.7%).
January 2025 to January 2026: $985,653 to $948,698 (-3.7%).
Average selling prices in the City of Toronto declined from December to January. Compared to a year earlier, prices are also lower, indicating that affordability has improved modestly while buyers remain cautious in the current market.
Total Sales
December 2025 to January 2026: 1,363 to 1,074 (-21.2%).
January 2025 to January 2026: 1,386 to 1,074 (-22.5%).
Total home sales in the City of Toronto dropped sharply from December to January. On a year-over-year basis, sales remain well below last year’s levels, highlighting that uncertainty continues to weigh on purchasing activity despite improving affordability.
New Listings
December 2025 to January 2026: 1,950 to 4,077 (+109.1%).
January 2025 to January 2026: 4,737 to 4,077 (-13.9%).
Active Listings
December 2025 to January 2026: 6,456 to 6,968 (+7.9%).
January 2025 to January 2026: 6,920 to 6,968 (~+1.0%).
New Listings in the City of Toronto increased significantly from December to January, reflecting the typical seasonal surge in seller activity at the start of the year. Active Listings also edged higher both month over month and year over year, maintaining elevated inventory levels and reinforcing a market that continues to offer buyers greater choice and negotiating flexibility.
SNLR (December to January)
GTA: 33.4% to 33.3%.
City of Toronto: 34.1% to 33.9%.
Outlook
January’s numbers reinforce that the GTA real estate market is still recalibrating after several years of volatility. For buyers, conditions remain favourable, while sellers benefit most from realistic pricing and a clear understanding of today’s market dynamics as 2026 unfolds.
What does 2026 look like for you in the market? Everyone’s situation is unique, and I can help evaluate yours!
Thinking of moving to the next stage? Let’s chat. Send me an email (hillary@hillarylane.ca) or text/phone (416-882-4707).
