Borrowing costs in the Greater Toronto Area are higher than they were a year ago.
Even so, the monthly mortgage payment on an average-priced home has only edged up, and it’s still well below what buyers were paying in 2023 and 2024, according to the latest from the Toronto Regional Real Estate Board (TRREB).
“GTA homebuyers continued to benefit from substantial negotiating power on price over the past year. While borrowing costs have increased on the back of higher inflation, the impact on monthly mortgage payments has been mitigated by lower selling prices, helping keep affordability in check,” said TRREB Chief Information Officer Jason Mercer.
Prices have continued to fall from last year’s levels. In October, the MLS® Home Price Index (MLS® HPI) Composite benchmark was 4.3% lower than a year earlier. The average selling price came in at $1,024,108, down 2.7%.
Even with lower prices, many buyers are still holding back. TRREB says they’re uncertain about where inflation, borrowing costs and the economy are headed.
There were 5,603 home sales through TRREB’s MLS® System in October, 7.9% fewer than in October 2025. New listings dropped to 14,173, down 11.9% year-over-year.
The month-to-month picture looks different. With seasonal adjustment, sales, new listings, the HPI Composite and the average selling price all moved up from September.
TRREB President Daniel Steinfeld said a clearer economic picture could bring buyers back in the new year.
“If a Canada-U.S. trade deal is reached, GTA residents could gain a clearer picture of the economic outlook. Combined with a resolution to the conflict in the Middle East, this could help ease concerns about inflation and economic uncertainty, strengthen consumer confidence and renew interest in homeownership as we move into 2027,” said Steinfeld.
TRREB CEO John DiMichele took a longer view.
“While we continue to experience shorter-term volatility in the ownership housing market, we can’t lose track of the fact that the permanent population will continue to grow in our region. Policy announcements, including HST rebates and development charge reductions should help bring a greater diversity of ownership and rental supply online in the medium-term to ensure new families are properly and affordably housed,” said DiMichele.
