Home sales in the Greater Toronto Area were down in September from a year ago, while average prices continued to decline as soft conditions persist in some parts of the housing market. The Toronto Regional Real Estate Board said in its monthly report Tuesday that homebuyers were in a holding pattern in September, as uncertainty surrounding the economy, inflation and borrowing costs weighed on sales. Sales totalled 5,040 in September, down nine per cent year-over-year, it said. The result came as the average selling price for the month was $1,006,409, down from $1,060,036 a year earlier. The composite benchmark price, meant to represent the typical home, was down 4.7 per cent year-over-year in September. Renewed tensions with the United States and a surge in gas prices amid war in the Middle East have kept potential buyers on the sidelines in recent months. Meanwhile, rising bond yields have pushed fixed mortgage rates higher over the past month, and buyers are expecting the Bank of Canada to raise interest rates, said John Pasalis, president of Move Smartly Realty Inc. “Higher rates — and the idea of higher rates — is obviously straining on affordability, but also leading buyers to think that the market’s going to be a little bit softer in the future,” he said in an interview on Tuesday. The slowdown is likely going to continue through the rest of the year, he said. Slowing home sales come as municipalities across Ontario, including the GTA, hold an election on Oct. 26. “Housing is one of the biggest issues on voters’ minds, and the upcoming municipal election will help shape housing policy across the GTA and Simcoe County for the next four years,” said Daniel Steinfeld, TRREB president, in a statement. “The decisions our next mayors and councillors make on affordability, housing supply and the costs associated with buying a home can also influence buyer demand and confidence in the market.” New listings in September totalled 16,500, down 14.4 per cent year-over-year. Within the City of Toronto, TRREB said there were 1,937 sales last month, down 5.4 per cent from September 2025. Across the rest of the GTA, home sales decreased nine per cent to 5,040. Townhouses saw the biggest drop in activity among all housing types, with 12.8 per cent fewer sales year-over-year. There were also 7.8 per cent fewer condos sold last month compared with a year ago. The semi-detached markets grew 8.2 per cent year-over-year, while detached home sales were up 8.7 per cent. Toronto real estate broker Cailey Heaps said while some segments of the market suffered, ultra-luxury buyers as well as first-time homebuyers were active. “First-time homebuyers have accepted that the market that we’re in now is the new normal. It’s no longer about waiting to time a market,” she said. “You’re going to make a buying decision when it feels right for you, whether that’s because you’re getting married or starting a family or relocating to a new city or because you can afford it.” The move-up market, or homeowners who can upgrade to a bigger property, largely remained on the sidelines last month, Heaps said. “They don’t want to take the risk when the economy is not as strong as it was, or they have some job insecurity. So, not many people are moving in that segment,” she said. A muted market could pick up in the new year but Pasalis said a rebound hinges on economic certainty and market confidence. That means no new tariff threats, easing tensions with the U.S. and a slight decline in bond yields. “We don’t even need to see a dramatic change, but if (bond yields) dip a little bit in the new year where mortgage rates are closer to the four per cent range rather than the mid-to-high four per cent range, I think again that can shift buyers off of the sidelines,” he said. --- Ritika Dubey, The Canadian Press This report by The Canadian Press was first published Oct. 6, 2026.
