Home sales in the Greater Toronto Area were down in September from a year ago, while average prices continued to decline.
The Toronto Regional Real Estate Board said on Tuesday sales totalled 5,040 in September, down nine per cent year-over-year.
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.
The board says homebuyers were in a holding pattern in September, as uncertainty surrounding the economy, inflation and borrowing costs weighed on sales.
Renewed tensions with the United States and a surge in gas prices amid an ongoing 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 — at least for 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.
Pasalis said a rebound in the new year 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.
This report by The Canadian Press was first published Oct. 6, 2026.
By Ritika Dubey | Copyright 2026, The Canadian Press. All rights reserved.