Toronto home sales experienced their first monthly decline in six months during August, decreasing by 1.3%. This dip follows a period of improving sales for five consecutive months and comes amidst an escalation in the trade war between the US and Canada, which is impacting the outlook for the nation's housing market. The Toronto Regional Real Estate Board data also showed that the benchmark price of a home dropped by 0.1% to C$931,200 ($673,000), ending a two-month rebound in values.
The broader Toronto-area real estate market in August was described as lethargic, leading some potential sellers to reconsider listing their properties, while others withdrew existing listings. On a seasonally adjusted basis, sales in the Greater Toronto Area (GTA) fell 1.3% from July. However, new listings surged by 5.2% in August from July, a trend that senior economist Daren King of National Bank of Canada attributed to sellers responding to the renewed momentum observed in previous months.
Compared to August of the previous year, sales dropped by 2.1%, and new listings decreased by 14.1%. The average price in the GTA in August fell 2.7% compared to August 2025, reaching $993,410. This marks the second time this year that the average price in the GTA has fallen below $1 million. The uncertainty surrounding the Canada-U.S. trade war is a significant factor contributing to this market shift, with the breakdown of trade deal negotiations in late August creating a "black cloud" over market sentiment, as noted by real estate professional Mr. Dalinda.
