Buyers remain cautious, but October showed signs that the GTA housing market is gaining some momentum heading into 2027.
The Greater Toronto Area real estate market remained relatively quiet in October as concerns about inflation, borrowing costs and the economy continued to keep some buyers on the sidelines. However, underneath the year-over-year numbers, there were also signs of increased activity compared to September.
According to the Toronto Regional Real Estate Board (TRREB), 5,603 homes were sold across the GTA in October 2026, down 7.9% compared to October 2025. New listings also declined, with 14,173 homes coming to market, an 11.9% decrease from last year.
Interestingly, both sales and new listings increased compared to September when adjusted for normal seasonal changes. In simple terms, the market may still be slower than last year, but activity picked up from the previous month.
What is happening with GTA home prices?
The average selling price in October was $1,024,108, which was 2.7% lower than October 2025. TRREB's benchmark home price was also down 4.3% year over year.
Compared to September, however, both the average selling price and benchmark price edged higher.
For buyers, this means there is still an opportunity to negotiate. Many homes are not attracting the intense competition we saw during previous markets, giving qualified buyers more time to compare properties, negotiate price and include appropriate conditions in their offers.
What does this mean for buyers?
Despite borrowing costs remaining a concern, lower home prices have helped offset some of the impact on monthly mortgage payments. According to TRREB, payments on an average priced GTA home remain considerably more affordable than they were during 2023 and 2024.
For buyers who are financially ready, the current market can offer something that is often harder to find when the market heats up: choice and negotiating power.
Waiting for the "perfect" market can also come with a trade-off. If buyer confidence improves and more people return to the market, today's negotiating advantage may not last forever.
What does this mean for sellers?
This is not a market where simply putting a home on MLS guarantees results.
Buyers have options, which means pricing, presentation and marketing matter. Sellers need to understand what comparable properties are actually selling for today rather than relying on prices from a different market.
At the same time, fewer new listings compared to last year could eventually reduce the amount of competition between sellers if inventory continues to tighten.
Looking ahead to 2027
Economic confidence will likely play an important role in where the GTA housing market goes next. Buyers are watching inflation, interest rates, employment and the broader economy before making major financial decisions.
What October tells us is that buyers have not disappeared. Many are simply being more careful about when and how they purchase.
Whether you are buying, selling or investing, the GTA is also not one single market. Conditions can be very different from one city, neighbourhood or even property type to another.
Before making a move, look beyond the headlines and understand what is happening in the specific market that matters to you.
Contact RCC Real Estate Group for a personalized market analysis and a strategy based on your real estate goals.
