TORONTO
Home sales in the Greater Toronto Area fell 7.9 percent in October compared to a year ago as economic uncertainty kept buyers and sellers on the sidelines.
The Toronto Regional Real Estate Board (TRREB) said 5,603 homes changed hands last month.
New listings also declined, falling 11.9 percent year over year to 14,173.
“You essentially have both buyers and sellers sitting on the sidelines right now, waiting to see how things shake out with the economy, inflation and borrowing costs,” said Jason Mercer, TRREB’s chief information officer.
The average selling price of a GTA home was $1,024,108 in October, down 2.7 percent from a year earlier.
The MLS Home Price Index composite benchmark also declined 4.3 percent year over year.
Mercer said the uncertainty surrounding the economic outlook has created a market where prospective buyers and sellers are increasingly reluctant to make major financial decisions.
“We’ve been feeling the impact of would-be rate hikes for two or three months now,” he added.
The report comes as Canadians contend with rising borrowing costs following the Bank of Canada’s decision to raise its benchmark interest rate by 25 basis points to 2.5 percent, its first increase since July 2023.
The central bank is attempting to contain inflation, which currently sits at 3.1 percent.
Mercer said buyers have benefited from having more properties to choose from and greater negotiating power when making offers.
“We have seen a better supply market, and more negotiating power for buyers, and that’s helped with affordability,” he said.
On a seasonally adjusted basis, both home sales and new listings increased month over month compared to September.
Active listings fell 10 percent from October 2025, as total inventory across the GTA stood at 25,098 homes for sale.
Within the City of Toronto, there were 2,184 sales last month, down 6.3 percent from October 2025.
Across the rest of the GTA, home sales decreased 8.9 percent to 3,419.
All housing types saw lower sales year over year, led by an 11 percent decline in townhouse sales, followed by a 10.4 percent decrease in condo sales.
There were 8.1 percent fewer semi-detached houses sold last month compared with a year ago, while the detached market saw a 4.4 percent drop.
“GTA homebuyers continued to benefit from substantial negotiating power on price over the past year,” Mercer said.
“While borrowing costs have increased on the back of higher inflation, the impact on monthly mortgage payments has been mitigated by lower selling prices, helping keep affordability in check.”
However, Mercer cautioned against interpreting the latest figures as a sign that housing affordability has returned to pre-pandemic levels.
“We’re still off quite a bit from where we were coming out of the pandemic, and I think that has helped a lot of households mitigate the impact of higher borrowing costs,” he said.
He said prospective buyers who are waiting for more favourable conditions could remain on the sidelines until there is greater clarity around the economy.
“If you can’t get the price point you’re looking for to sell your home and move around in the market as your situation dictates, you’re just gonna put that decision on hold,” Mercer said.
Looking ahead, Mercer expects November and December to bring the usual seasonal slowdown in real estate activity, describing them as the usual “slower months of the year.”
Trade deal could boost confidence
TRREB president Daniel Steinfeld said in a news release that a Canada-U.S. trade deal could help clarify the economic outlook.
“Combined with a resolution to the conflict in the Middle East, this could help ease concerns about inflation and economic uncertainty, strengthen consumer confidence and renew interest in home ownership as we move into 2027,” Steinfeld said.
Mercer added that policies encouraging more housing construction and a greater diversity of home types will be important as the GTA’s population continues to grow.
“The population, the permanent population, in the GTA, and certainly drilling down to the city of Toronto, continues to grow, and all those people require a place to live,” Mercer said.
e2gold.ca reported this week that a Democratic Congress is unlikely to curb U.S. President Donald Trump's trade war against Canada.
This story was written by the e2gold.ca newsroom from reporting by BNN Bloomberg, CP24 and CityNews. Quotes are checked word for word against that reporting.