GTA sales rose year over year in May 2026 as new listings fell, with prices still under pressure
The Greater Toronto Area resale market posted a significant acceleration in May 2026, with home sales recording their sharpest monthly gain in nearly a year as dwindling new listings pointed to tightening conditions that could begin lifting prices before the end of 2027.
Data released Wednesday by the Toronto Regional Real Estate Board (TRREB) showed 6,583 home sales recorded through the MLS System in May 2026. That's an increase of 6.3% compared with May 2025.
On a seasonally adjusted basis, that translated to a 10% jump from April, the strongest month-over-month advance since July 2025 and the third consecutive monthly gain.
New listings told a contrasting story. Just 17,698 properties entered the market during May, a decline of 18.9% year over year and a further 2.1% drop from April on a seasonally adjusted basis.
"Spring sales have been stronger than last year, reflecting improved affordability stemming from lower selling prices and borrowing costs," said Daniel Steinfeld, president of TRREB.
"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."
Read more: GTA affordability fears intensify
Prices still under pressure
Despite the strengthening in transaction volumes, price metrics remained soft. The MLS Home Price Index composite benchmark declined 6.7% year over year, while the average selling price came in at $1,069,700, down 4.6% from May 2025.
On a seasonally adjusted, month-over-month basis, however, the average price edged slightly higher compared with April, an early indicator that the correction may be losing momentum.
Housing affordability worsened in 12 of 13 major Canadian cities last month, according to Ratehub .ca – and Toronto, one of the country’s most notoriously pricey markets, was among the areas that saw the average income required to buy a home increase.https://t.co/9SQshyJOkh
— Canadian Mortgage Professional Magazine (@CMPmagazine) May 22, 2026
Jason Mercer, TRREB's chief information officer, acknowledged that buyers retained leverage throughout the spring.
"Inventory levels trended lower over the past year, but buyers continued to have substantial negotiating power through the spring, helping with affordability," he said.
"Looking ahead, if sales strengthen further relative to listings, selling prices will level off and even start to grow as we move into 2027."
The May figures build on a recovery pattern since early in the season, when starter homes and entry-level condos led Toronto's tentative spring recovery while premium properties and micro-condos remained largely subdued.
Read more: Spring stirs Canadian home sales, but uncertainty keeps recovery muted
Supply legislation adds longer-term tailwind
TRREB chief executive officer John DiMichele pointed to incoming provincial legislation as a critical supply-side lever.
"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," he said.
The legislation, introduced by Ontario's Minister of Municipal Affairs and Housing in late March 2026, aims to streamline planning approvals and reduce development costs across the province.
TRREB said many of Bill 98's measures align with recommendations from its own policy report on removing municipal barriers to housing supply and affordability in Ontario.
For mortgage brokers advising clients in the current environment, the data offer a broadly constructive signal: sustained sales growth and contracting supply are the conditions that have historically preceded price stabilization.
In March 2026, year-over-year GTA sales turned positive for the first time in six months, and that momentum has continued to build.
Whether it translates into broader market confidence will hinge, according to TRREB, on progress in Canada–US trade negotiations and any resolution to ongoing geopolitical uncertainty.
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