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The Greater Toronto Area housing market remained relatively quiet in September as many buyers continued to wait for more clarity around the economy, inflation, employment, and borrowing costs.
While affordability has improved from previous market highs, uncertainty appears to be keeping some potential buyers on the sidelines.
September GTA Housing Market at a Glance
According to the Toronto Regional Real Estate Board (TRREB), 5,040 homes were sold across the GTA in September 2026, representing a 9% decrease compared to September 2025.
At the same time, 16,500 new listings came onto the market, which was 14.4% lower than a year earlier.
Compared with August, both sales and new listings also declined on a seasonally adjusted basis.
September 2026 Key Numbers
Home Sales: 5,040
New Listings: 16,500
Average Selling Price: $1,006,409
Sales Change: -9% year-over-year
New Listings Change: -14.4% year-over-year
What Happened to GTA Home Prices?
Home prices remained below last year's levels in September.
The MLS® Home Price Index Composite benchmark fell 4.7% compared with September 2025, while the average GTA selling price of $1,006,409 was 5.1% lower year-over-year.
Prices were also slightly lower on a seasonally adjusted basis compared with August.
However, looking at the raw average selling price, September's $1,006,409 was higher than August's $993,410, an increase of approximately 1.3% month-over-month.
This is an important distinction because seasonally adjusted figures account for typical changes in market activity throughout the year, while the raw average compares the actual reported average prices for the two months.
Why Are Buyers Still Waiting?
There may be plenty of people who want to buy a home, but wanting to buy and feeling comfortable enough to make a move are two different things.
For many households, the decision currently comes down to confidence.
Buyers are watching several factors, including:
Job security and the broader economy
Inflation and the cost of living
Mortgage and borrowing costs
Home prices and affordability
The direction of interest rates
Until there is greater certainty around some of these areas, some potential buyers may continue to delay their purchase.
Housing Affordability Remains a Major Issue
Affordability isn't determined by home prices alone.
Taxes, transaction costs, borrowing costs, and government housing policies can all affect how much it ultimately costs to purchase and own a home.
With municipal elections approaching, housing supply, affordability, development, and the costs associated with buying a home are likely to remain important issues across the GTA and Simcoe County.
TRREB has also continued to call for governments to reduce barriers to homeownership, including costs such as Toronto's Municipal Land Transfer Tax.
What Does This Mean for Buyers?
The current market may offer opportunities for buyers who are financially prepared.
With sales activity remaining relatively subdued, some buyers may have more time to evaluate properties, negotiate, and make decisions compared with a highly competitive market.
However, the right time to buy depends less on trying to predict the exact bottom of the market and more on your own financial situation, mortgage qualification, timeline, and long-term plans.
What Does This Mean for Sellers?
For sellers, pricing and strategy continue to matter.
With fewer buyers actively purchasing, listing a property significantly above what the current market supports can make it harder to generate interest.
Understanding recent comparable sales, local inventory, buyer activity, and how quickly similar properties are selling can help sellers position their home more effectively.
The Bottom Line
September's numbers show a GTA housing market that remains cautious.
Sales and new listings were both lower than a year ago, while average prices remained below September 2025 levels. At the same time, the raw average selling price increased from August to September.
There appears to be potential demand waiting on the sidelines, but confidence in employment, inflation, borrowing costs, and the broader economy will likely play an important role in determining when more buyers return to the market.
For buyers and sellers, this remains a market where understanding the numbers and having a strategy based on your individual situation is more valuable than trying to perfectly time the next market move.
