Toronto Home Prices Fall 4.5% in July as New Listings Drop Sharply

Greater Toronto home sales slipped 0.9% in July while the average price fell 4.5% to $1,003,956 and new listings dropped 17.8%, TRREB data show.

Greater Toronto's housing market shrank on every axis in July — but the supply side shrank fastest, and that changes the story. The Toronto Regional Real Estate Board reported 5,995 sales through its MLS System, down 0.9% from July 2025, in figures released on 6 August. The average selling price fell 4.5% year on year to $1,003,956. The number that stands out, though, is new listings: down 17.8% to 14,484.

Fewer listings, firmer floor

When sales dip 1% but fresh supply drops 18%, the balance between buyers and sellers tightens even as prices fall. TRREB president Daniel Steinfeld put it plainly: "With sales accounting for a larger share of listings, buyers may find there is less room to negotiate moving forward." Chief information officer Jason Mercer added that recent readings on economic growth and jobs "surprised to the upside" — the board's case for price stability rather than a deeper slide.

A correction that has been grinding on

July's 4.5% annual price decline is consistent with what Glopra's data has shown for months: Canadian home prices are down 3.6% year on year on our board, with the national average around $4,320 per square metre and a gross rental yield of 5.72% (snapshot: 23 July 2026). Toronto's average price now sits barely above the C$1 million line — a psychological threshold the market has crossed in both directions since 2022.

For foreign investors the arithmetic is double-edged. A weaker market means entry prices well below the 2022 peak, but Canada continues to restrict most non-resident residential purchases, so the practical route into this correction runs through exempt categories and commercial-residential structures rather than a simple condo purchase.

The structural complaint

TRREB used the release to repeat its supply-side argument. CEO John DiMichele pointed at "restrictive zoning, outdated rules, high taxes and fees, and approval delays" as the forces keeping housing expensive even in a down market. July's collapse in new listings suggests sellers, at least, agree that this is no market to rush into.

Data in this article: TRREB Market Watch, 6 August 2026; Glopra Market Data, snapshot 23 July 2026.

Sources: TRREB via GlobeNewswire https://www.globenewswire.com/news-release/2026/08/06/3339984/0/en/GTA-Housing-Market-Tightens-in-July.html; BNN Bloomberg https://www.bnnbloomberg.ca/business/real-estate/2026/08/06/greater-toronto-home-sales-tick-lower-in-july

Market data: Canada