January 2026 Real Estate Market Update

The Greater Toronto Area (GTA) housing market began 2026 with a shift in tempo, as January saw a correction in both sales activity and pricing.

The number of sales reported was down 19.3% compared to January 2025, driven primarily by it being the snowiest January on record in nearly 90 years, and the massive winter storm that hit the region.

At the same time, active listings rose by 8.1%, providing greater choice for motivated homebuyers.

As a result, the average selling price adjusted to $973,289, a 6.5% year-over-year dip.

On a seasonally adjusted basis, the average price trended lower compared to December 2025 — down 3.3% from $1,006,735 — signalling a continued period of price discovery as the market recalibrates to current economic conditions and a Bank of Canada key lending rate of 2.25%.

The detached home market saw sales fall 13.6% year-over-year and the average price slide by 7.4% to $1,277,915. Despite the significant decline in sales, the detached category remains the most active by volume.

The semi-detached property segment recorded 19.2% fewer sales, with an average price sitting at $945,967. This represents a 9.7% price adjustment compared to January 2025, offering a more accessible entry point for buyers seeking lowrise housing options in a competitive landscape.

Sales of townhomes fell by 23.7% year-over-year; however, the segment continues to be a vital middle ground for families, maintaining a steady share of the overall market. The average sale price was $819,543, a drop of 9.4%.

Meanwhile, condominium apartments remained a significant driver of activity. While sales were down by 26% from January 2025, with an average price of $604,759 — a decline of 9.8% — the continued availability of inventory provided the best opportunity for first-time buyers to enter the housing market under more favourable conditions.

January’s data indicates a market that is wholly in buyers’ favour. With new listings reaching 10,774 and the sales-to-new-listings ratio, which measures the number of homes sold relative to the new number of new listings in a given period, trending toward 33.3%, buyers have great leverage and more time to make informed decisions.

If you would like to know how the real estate market performed in a specific neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.