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The Greater Toronto Area housing market showed further signs of improvement in June, with home sales rising compared to last year while fewer new properties came onto the market.
The shift suggests that market conditions are gradually tightening as buyer activity increases and available supply becomes more limited.
Home Sales Rise as New Listings Fall
GTA REALTORS® reported 6,770 home sales in June 2026, representing a 9.4% increase compared to June 2025.
At the same time, 17,282 new listings were added to the market, a 12.9% decrease year-over-year.
This combination of stronger sales and fewer new listings could create more competition among buyers, particularly if the trend continues through the second half of the year.
Looking at the first six months of 2026, total sales were also slightly higher than during the same period in 2025, while new listings were significantly lower.
The Spring Market Showed Clear Improvement
After a slower first quarter, housing activity picked up noticeably during the second quarter of 2026.
This is in line with expectations that the year would unfold in two distinct phases, with a quieter start followed by stronger activity later on.
If buyer demand continues to build while listing supply remains limited, the GTA could see increased competition for available homes during the remainder of the year. This may also bring some buyers who have been waiting on the sidelines back into the market.
Home Prices Are Still Lower Than Last Year
Despite stronger sales activity, GTA home prices remained below June 2025 levels.
The MLS® Home Price Index Composite benchmark fell 5.4% year-over-year, while the average selling price was $1,058,658, down 3.9% compared to June 2025.
However, the pace of annual price declines has been easing in recent months.
On a seasonally adjusted month-over-month basis, both the average selling price and the benchmark price increased slightly compared to May 2026. This could be an early sign that pricing conditions are beginning to stabilize.
What Does This Mean for Buyers and Sellers?
For buyers, the market may still offer opportunities compared to previous years, but declining new listings could mean less choice and more competition if demand continues to increase.
For sellers, stronger sales activity may be encouraging, especially as the gap between current prices and last year’s levels continues to narrow.
The key trend to watch in the second half of 2026 will be the balance between buyer demand and the number of homes available for sale. If sales continue to rise while new listings remain lower, prices could stabilize further and potentially begin moving upward.
Housing Affordability Remains a Major Challenge
Affordability continues to be one of the biggest issues facing the GTA housing market.
Development charges help municipalities fund infrastructure and community growth, but they can also significantly increase the cost of building new homes. According to TRREB, these charges can represent as much as 20% of a home’s purchase price, contributing to higher costs for both buyers and renters.
Programs aimed at reducing development charges could help lower some of the upfront costs associated with new housing construction while supporting municipalities with alternative funding.
The Bottom Line
June’s numbers point to a GTA housing market that is gradually gaining strength.
Sales are increasing, fewer new listings are entering the market, and month-over-month prices have shown modest improvement. While average prices remain below last year’s levels, market conditions appear to be tightening.
If these trends continue, the second half of 2026 could bring stronger buyer competition, improved seller confidence, and greater potential for price stabilization or renewed growth.
