Canada Housing Market

The Greater Toronto Area saw a sharp slowdown in housing activity in November, with home sales falling 15.8 percent year-over-year. According to new data from the Toronto Regional Real Estate Board (TRREB), only 5,010 homes traded hands last month as affordability pressures, job uncertainty, and high borrowing costs continued to weigh on buyer confidence.

While the GTA remains one of Canada’s most active real estate markets, November’s numbers reinforce a growing trend: many buyers are choosing to wait, watching how interest rates, the economy, and future policy decisions unfold before making a move.

Home Sales Slide Nearly 16 Percent Year-Over-Year

TRREB reports that November home sales fell to 5,010 transactions, a significant decline from last year. This slowdown reflects a cautious market where both buyers and sellers remain hesitant.

Key Market Highlights:

• Sales down 15.8 percent year-over-year
• Average selling price: $1,039,458 (down 6.4 percent)
• New listings down 4 percent
• Active listings up 16.8 percent

The rise in active listings signals a buildup of inventory, creating more choice for buyers but also highlighting slower turnover across the region.

Average Home Prices Dip as Market Adjusts

The average selling price across the GTA dropped to $1,039,458, marking a 6.4 percent decline from the previous year. Price adjustments are most noticeable in higher-density segments such as townhomes and condos, although detached properties have also seen moderation.

TRREB notes that the current price environment reflects a balancing act between economic uncertainty and improved selection in the marketplace.

Active Listings Rise 16.8 Percent

One of the most notable shifts in November’s data is the increase in active listings. With more homeowners listing but fewer sales taking place, the GTA now has a much larger pool of available properties than it did last year.

This trend can be linked to several factors:

• High interest rates limiting borrower qualification
• Concerns around employment and the economic outlook
• Seasonal slowdown typical of late fall

More inventory may eventually ease pressure on buyers – but for now, many are still choosing to wait for rate cuts or clearer economic signals.

Why Are Buyers Waiting?

Several headwinds are influencing buyer behavior:

1. High Borrowing Costs

Even with expectations of future rate cuts, today’s mortgage rates continue to impact affordability.

2. Economic Uncertainty

Concerns over layoffs, inflation, and recession risks have made buyers more cautious.

3. Improved Inventory

With more choice, buyers no longer feel the urgency seen in previous years.

4. Market Psychology

Any shift in prices – even modest – encourages buyers to wait a little longer.

What This Means for the Market Heading Into 2026

November’s data suggests the GTA is entering a period of slower, more balanced conditions. Sales declines, rising inventory, and softening prices point to a market still adjusting to higher interest rates and a cooling economy.

However, many analysts expect renewed activity once borrowing costs begin to fall, potentially reigniting demand in the second half of 2026.

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References (APA Format)

Toronto Regional Real Estate Board. (2025). Market Watch: November 2025 Housing Report. https://trreb.ca