The Greater Toronto Area (GTA) resale housing market tightened in May 2026 compared to last year, according to the Toronto Regional Real Estate Board (TRREB). Sales increased year-over-year, whereas new listings declined over the same period. As standing inventory has been absorbed, competition between buyers has likely increased in some neighbourhoods. This should see the price trend flatten and ultimately trend upwards in the months ahead.

Improved affordability

“Spring sales have been stronger than last year, reflecting improved affordability stemming from lower selling prices and borrowing costs,” says TRREB President Daniel Steinfeld. “Sales are forecast to improve further as we move through the second half of this year. Recovery would be further bolstered by positive news on the trade front along with an easing of geopolitical tensions and related uncertainty.”

“Inventory levels trended lower over the past year, but buyers continued to have substantial negotiating power through the spring, helping with affordability,” adds TRREB Chief Information Officer Jason Mercer. “Looking ahead, if sales strengthen further relative to listings, selling prices will level off and even start to grow as we move into 2027.”

GTA realtors reported 6,583 home sales through TRREB’s MLS System in May 2026 – an increase of 6.3 per cent compared to May 2025. New listings amounted to 17,698 – down by 18.9 per cent year-over-year.

On a seasonally adjusted basis, May 2026 home sales were up by 10 per cent month-over-month compared to April 2026 and new listings were down by 2.1 per cent – pointing to a monthly tightening of market conditions as well.

The MLS Home Price Index Composite benchmark was down by 6.7 per cent year-over-year in May 2026. The average selling price, at $1.06 million, was down by 4.6 per cent compared to May 2025.

Easier, faster and less expensive

On a month-over-month seasonally adjusted basis the average selling price was up slightly compared to April 2026 and the MLS HPI Composite edged slightly lower.

“TRREB supports Bill 98, the Building Homes and Improving Transportation Infrastructure Act of 2026, which contains a simple but critical truth: If we want more attainable housing, we need to make it easier, faster and less expensive to build homes,” says TRREB Chief Executive Officer John DiMichele. “Many of the concrete measures contained in Bill 98 align with recommendations in TRREB’s recently released policy report, Removing Roadblocks: Tackling Municipal Barriers to Housing Supply and Affordability in Ontario.”