The Toronto residential market experienced a significant year-over-year decline in January 2026, with home sales dropping 19.3% compared to January 2025. The average selling price fell by approximately 6.5% year-over-year to $973,289, while days on market increased from 37 to 45, indicating a slower-paced market. New listings also declined by 13.3% year-over-year, though the drop in sales outpaced the decline in supply.
The 8-day increase in days on market (from 37 to 45) signals growing buyer hesitation and reduced urgency. Seasonally adjusted figures also show a month-over-month decline in both sales (-9.9%) and average price (-2.3%) from December 2025 to January 2026, suggesting weakening momentum heading into 2026.