July 2026 Real Estate Market Update
Home sales, prices and inventory all retreated across the Greater Toronto Area (GTA) in July, although by varying degrees.
Sales fell 11% from June, interrupting the stronger activity seen during the spring. This suggests buyers became more cautious as the market entered the typically slower summer period.
The average selling price dropped 5% month-over-month to $1,003,956, driven largely by declines in the detached and semi-detached sectors. This was the second-lowest monthly average recorded in 2026. From February through May, the average price climbed by more than $96,000; however, losses over the past two months have totalled $65,744, erasing a significant portion of those earlier gains.
New listings also declined considerably, from more than 17,000 properties in June to just under 14,500 in July. The slowdown contributed to a 4.5% monthly decrease in total active inventory, which was also down compared to June 2025. Despite the annual decline, active listings remained 47% above the 10-year historical average for the month.
Looking at the individual housing segments, the detached market recorded a significant monthly decline of 5.3%, or $72,514, bringing the average selling price to $1,291,690. Active inventory declined by nearly 4%, while monthly sales fell by 14%.
The semi-detached market likewise experienced a considerable monthly decline in average selling prices, with values falling by 7% to an average of $964,922. Active inventory declined by 12%, while sales fell by 10%.
Townhome selling prices recorded a more modest decline, falling less than 1% to $903,986. Active inventory declined by 5%, while sales fell by 8%.
The condominium market was the only major housing segment to record a monthly increase in average selling prices. Condo values edged 1% higher to an average of $636,323. Active inventory declined by 3%, whiles sales fell by 9%.
The July results leave the GTA market in an interesting position heading into fall. Although inventory declined during the month, the reduction in available supply was accompanied by an even more pronounced slowdown in sales, limiting any meaningful support for prices. The coming months should provide greater clarity on whether buyers return during the traditionally more active fall market or renewed listing activity pushes inventory higher following its summer decline. For now, elevated supply and cautious demand continue to favour buyers and put downward pressure on prices.
If you would like to know how the real estate market specifically performed in your neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.
