Ontario’s housing market just crossed a notable price threshold.
The average price of a resale home sold across Ontario fell to $797,486 in July 2026, bringing the provincial average below $800,000 as prices continued to decline from last year.
According to new data from the Canadian Real Estate Association and Ontario Real Estate Association, Ontario’s average resale price was 2.9% lower than it was in July 2025.
And some types of homes have seen even larger price declines.
Ontario’s Average Home Price Falls To $797,486
The average resale price across Ontario came in at $797,486 in July, down from $831,595 in June.
That means the average price recorded in July was more than $34,000 lower than one month earlier, although monthly changes in average prices can also be influenced by the mix of homes being sold.
Looking at the year so far, Ontario’s average resale price between January and July was $819,570, which was 3.2% lower than during the same period in 2025.
Ontario’s MLS Home Price Index tells a similar story.
The province-wide composite benchmark price was $749,800 in July, down 3.9% compared with July 2025. CREA notes that benchmark prices are generally a better tool for tracking changes in home values because average prices can be influenced by which types of homes happen to sell during a particular month.
Apartments Have Seen The Biggest Price Decline
The decline has not been equal across every part of the housing market.
According to the July data, benchmark prices were:
- Single-family homes: $832,800, down 3.6% year-over-year
- Townhouse and row homes: $586,600, down 6.0%
- Apartments: $490,500, down 6.9%
Apartments have therefore experienced the largest annual price decline of the three major property types, with benchmark prices nearly 7% lower than they were one year ago.
Townhouses and row homes have also recorded a significant correction, falling 6% year-over-year.
Ontario Still Has Plenty Of Homes For Sale
Lower prices are happening alongside relatively elevated housing inventory.
There were 73,890 active residential listings across Ontario at the end of July.
While that was 5.1% lower than July 2025, active inventory remained 20.5% above the five-year average and 40.2% above the 10-year average for the month.
Ontario had approximately 4.5 months of inventory at the end of July, compared with the long-term average of 3.1 months for this time of year.
More inventory generally gives buyers more options and can reduce some of the intense competition that defined Ontario’s housing market earlier in the decade.
Home Sales Remain Relatively Strong
Interestingly, lower prices have not resulted in a collapse in sales activity.
A total of 16,276 homes changed hands across Ontario in July, down only 1.3% from the same month last year.
Sales were actually 7.3% above the five-year average for the month, although they remained 12.4% below the 10-year average.
Through the first seven months of 2026, 95,887 homes were sold across the province, down 1.9% from the same period in 2025.
At the same time, fewer sellers are bringing homes to market.
Ontario recorded 36,945 new residential listings in July, a 10.8% decline from July of last year.
Ontario Is Underperforming The National Market
Ontario’s price decline also stands out when compared with Canada as a whole.
While Ontario’s average resale price fell 2.9% year-over-year, the national average home price increased slightly by 0.2%, reaching $674,819 in July.
That suggests Ontario continues to experience a more pronounced price correction than some other parts of the country.
What This Means For Ontario Homebuyers
For buyers who were priced out during the housing boom, falling prices and higher-than-normal inventory are creating a different market than the one seen only a few years ago.
An Ontario-wide average price of $797,486 is still far from affordable for many households, particularly when borrowing costs and everyday expenses are taken into account.
But buyers in many markets now have more homes to choose from, less pressure to make immediate offers and potentially more room to negotiate.
The biggest declines in apartments and townhouses could also be particularly important for first-time buyers, since those property types traditionally represent some of the more affordable entry points into homeownership.
Whether Ontario prices continue moving lower will depend on a combination of interest rates, employment, population growth, housing supply and how quickly buyers return to the market.
For now, however, the latest numbers show that Ontario’s average home price has officially slipped below $800,000.
References
Canadian Real Estate Association (CREA), Ontario Real Estate Association (OREA), July 2026 Ontario MLS housing market statistics. Ontario Real Estate Association | CREA Statistics
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