GTA Housing Market Enters Fall With Improved Affordability and Tighter Supply

The Greater Toronto Area housing market entered the fall season with buyers continuing to benefit from improved affordability and a broad selection of available properties. While September sales remained below last year’s levels, the decline in new listings was more pronounced, contributing to tighter supply conditions compared with September 2025.

The average selling price across the GTA reached $1,006,409 in September, returning above the $1 million mark after averaging $993,410 in August. On an unadjusted basis, this represented an increase of approximately 1.3 per cent month over month, although the average remained 5.1 per cent below September 2025. TRREB’s MLS® Home Price Index Composite benchmark was also 4.7 per cent lower year over year. TRREB reported that, on a seasonally adjusted basis, both the benchmark and average selling price edged lower compared with August. 

Sales remained relatively steady compared with the previous month. A total of 5,040 properties changed hands in September, just 17 fewer than the 5,057 transactions recorded in August. Compared with September 2025, sales were down 9 per cent. 

The supply side of the market provided a noteworthy shift. New listings totalled 16,500, down 14.4 per cent from the 19,270 properties brought to market in September 2025. Active inventory also declined 9.3 per cent year over year to 26,131 properties. With new listings falling at a faster annual rate than sales, the gap between available supply and demand narrowed compared with last September. 

This tightening supply picture comes as a significant number of potential buyers remain on the sidelines, waiting for greater confidence in the broader economic outlook. TRREB Chief Information Officer Jason Mercer pointed to the substantial pent-up demand that remains in the GTA:

“We know there is substantial pent-up demand in the GTA, with many households fully intending on purchasing a home in the months ahead. These would-be homebuyers want to take advantage of today’s more affordable housing market, but they need to be confident that their employment situation will remain solid and inflation will not put pressure on borrowing costs over the long term.”

The comments highlight the balance currently shaping the GTA market. While housing has become more affordable compared with a year ago, many would-be buyers continue to weigh their purchasing decisions against employment conditions, inflation and the longer-term cost of borrowing.

The detached market accounted for the largest share of September activity, with 2,399 sales representing nearly 48 per cent of all transactions. The average detached selling price was $1,292,016, with 12,321 detached properties available for sale at the end of the month. Detached homes continued to represent an important share of market activity as buyers weighed improved pricing against the range of properties available.

The semi detached segment recorded 459 sales during September, with the average selling price reaching $1,015,202. While sales were 8.2 per cent below September 2025, average prices were comparatively resilient, declining by just 0.2 per cent year over year. Within the City of Toronto, semi detached properties averaged $1,207,884, demonstrating continued strength for this housing type in more central locations.

The townhome market continued to provide buyers with a more accessible entry point into ground oriented housing. Across the broader townhouse category, 803 transactions were recorded in September at an average selling price of $820,637. Average prices were 4.6 per cent below the previous year, creating additional affordability for buyers looking for alternatives to detached and semi detached homes.

The condominium apartment market recorded 1,316 sales at an average price of $605,257. Condo apartments represented more than one quarter of all GTA transactions during September and continued to offer one of the most accessible ownership opportunities in the region. With average prices 7.7 per cent below September 2025, prospective buyers have greater purchasing power than they did a year ago, particularly those looking to enter the ownership market or move within the condominium segment.

September’s results suggest that the GTA market is entering the final months of the year with an interesting combination of improved affordability, lower inventory compared with last year and significant pent-up demand. While many buyers remain selective, the continued reduction in available supply could gradually change the balance between buyers and sellers, particularly in neighbourhoods and housing segments where inventory is becoming more limited.

For buyers, current conditions continue to provide choice and negotiating opportunities, while prices remain more accessible than they were a year ago. For sellers, the year over year decline in both new and active listings is an encouraging development that bears watching. Should buyer confidence strengthen and more households move forward with their purchasing plans, tighter inventory could lead to increased competition for well-priced properties.

As the fall market progresses, the relationship between returning demand, available supply and broader economic confidence will be an important indicator of the GTA housing market’s direction heading into the end of 2026.

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