Real Estate Market Watch – August 2026

The following is VIP Condos Toronto's summary of TRREB's August 2026 Market Watch report. The headline for August is supply, not demand: the number of homes available for sale across the Greater Toronto Area fell sharply, and sales edged lower alongside it — arguably limited by how little choice buyers had in some neighbourhoods. Here is a breakdown of the key statistics.  

Real Estate Market Watch: Residential Transactions

• 5,057 residential home transactions took place in August 2026, down from 5,168 in August 2025 — a decrease of 2.1% year-over-year.
• On a seasonally adjusted basis, August sales were down slightly month-over-month compared to July 2026.
• Total dollar volume for the month was just over $5.02 billion.

 

August 2026 Real Estate News: Average Selling Prices

• The average sale price for August 2026 was $993,410. This is a decrease of 2.7% from August 2025, when it was $1,021,300 — the second time this year the GTA average has dipped below the $1 million mark.
• The median selling price was $850,000.
• The MLS® Home Price Index (HPI) Composite benchmark was down 4.5% year-over-year.
• Month-over-month and seasonally adjusted, the HPI Composite was essentially flat versus July, while the average selling price actually edged up.

 

Monthly Market Update: New Listings and Inventory

• There were 12,075 new listings in August 2026, a 14.1% decrease from August 2025 (when there were 14,052).
• Active listings at month end totalled 24,482, down 11.3% from 27,594 a year earlier.
• The sales-to-new-listings ratio (trend) was 37.5%, with 4.6 months of inventory — a market that is balanced, but noticeably tighter than it was a year ago.
• New listings were up month-over-month on a seasonally adjusted basis, so some sellers are already responding to the thinner supply.

 

Real Estate Market Watch for August 2026: Days On The Market

• The average property spent 51 days on the market, up from 49 days in August 2025 — an increase of 4.1%.
• Listings spent an average of 35 days on the market, up from 33 days in August 2025 — an increase of 6.1%.
• Sellers received an average of 97% of their asking price across the GTA.

 

Sales and Average Price by Home Type

• Detached homes were the bright spot for volume: 2,399 sales, up 0.5% year-over-year, at an average of $1,288,669 (down 1.8%). In the City of Toronto, detached sales rose 3.6%.
• Condo apartments recorded 1,330 sales, down 2.6%, at an average of $617,593 (down 3.6%). City of Toronto condos held up best — 885 sales, essentially flat year-over-year, averaging $651,648.
• Townhouses saw the steepest correction, with sales down 9.5% and the average price down 8.6% to $786,817.
• Semi-detached sales edged up 0.9% while the average price eased 5.0% to $931,665.

 

The Economic Backdrop

• Bank of Canada overnight rate: 2.3%. Prime rate: 4.5%.
• Posted mortgage rates: 5.49% (1-year), 6.05% (3-year), 6.09% (5-year).
• Inflation (year-over-year CPI): 3.0%. Toronto employment growth: 1.5%. Toronto unemployment rate: 6.8%.

 

What TRREB Is Saying

TRREB President Daniel Steinfeld noted that if inventory keeps tightening and prices begin to rise, buyers may face a trade-off between waiting for more economic certainty and buying before prices move higher — while better conditions for sellers could bring more listings to market.

Chief Information Officer Jason Mercer pointed to ownership housing remaining "relatively affordable over the past year," with average prices dipping and mortgage rates staying fairly flat. The main hold-back, in his view, has been uncertainty around trade with the United States and the possibility of higher inflation and borrowing costs ahead.

CEO John DiMichele added that a more balanced resale market is welcome but does not solve Ontario's underlying supply and affordability problem, calling on governments to remove barriers such as restrictive zoning, high taxes and development charges, and slow approvals.

 

What This Means for Buyers and Sellers

For buyers: the window of abundant choice is narrowing. Active listings are down more than 11% year-over-year, and with the HPI essentially flat month-over-month, the pattern of steady price declines that defined the past year is showing signs of levelling off. If you have been waiting for the bottom, understand that less selection usually arrives before higher prices do.

For sellers: fewer competing listings is the best news you have had in a while. Properties are still taking 51 days on average to sell and are trading at 97% of list, so pricing accurately from day one remains the difference between a clean sale and a stale listing.

For condo investors: the 416 condo market outperformed the 905 in August — City of Toronto condo sales were essentially flat year-over-year, while 905 condo sales fell 6.9% and prices there dropped 7.6%. Location within the GTA is doing more work than it has in years.

    In order for you to use these monthly market updates to your advantage, our informative guide for buying pre-construction properties can be found under the Resources tab in the top right corner of this page. It will answer common questions such as:

• How do I get my down payment?
• Can I use my RRSP for my down payment?
• How can I make the profits from my pre-construction purchases tax-free?
• What type of home or mortgage can I afford?
• Which incentives are available for first-time buyers?
• What is a PDI?
• What are the pros & cons of buying or selling an assignment before closing?

We at VIP Condos are pleased to offer further information regarding outlooks & prices in the GTA's home & condo markets - both for August 2026 and beyond. Check out our full series of real estate market watch reports.  

This summary is for general informational purposes and does not constitute legal, financial, or tax advice. Every situation is different — always consult a licensed real estate professional, lawyer, and tax advisor before making any decisions.

Ready to Take the Next Step?

Create your free, secure account at www.VIPCondosToronto.net for full MLS access, real-time sold data, and VIP pre-construction pricing and floor plans — the same tools our team uses every day.

For personalized advice on your specific Toronto buying or selling situation, contact Frank Merigliano and the VIP Condos Toronto team directly:

• Phone: 416-885-0172

• Email: frank@vipcondostoronto.net

• Web: www.VIPCondosToronto.net

Frank Merigliano, Team Leader / Sales Representative, VIP Condos Toronto, RE/MAX PREMIER INTERNATIONAL INC., Brokerage — licensed since 1993, with RE/MAX since 1995, and a Top 50 RE/MAX team in Canada since 2015.

Sources: TRREB Market Watch and the August 2026 Market Watch report (PDF), Toronto Regional Real Estate Board, released September 3, 2026.