Toronto Real Estate Market Update: Prices Climb as Sales Decline and Inventory Surges

Toronto’s real estate market continues to defy traditional supply and demand dynamics. According to recent data from the Toronto Regional Real Estate Board (TRREB), the benchmark price for a typical home in the Greater Toronto Area (GTA) climbed to $1,070,100 in January—a 0.7% increase month-over-month and 0.4% higher than the same period last year.

Despite this upward trend in prices, the market has experienced a notable slowdown in buyer activity. Home sales fell by 7.9%, totaling 3,847 units in January. In contrast, new listings surged by 48.6% to reach 12,393 homes, pushing the sales-to-new-listings ratio down to a mere 31%. This significant drop in the ratio indicates an oversupplied market—a scenario where inventory levels can eventually place downward pressure on prices if the trend continues.

The overall market inventory has also seen a dramatic increase. Active listings jumped to 17,157 in January, marking a 70.2% rise compared to the same month last year. This abundance of available properties, combined with the softening buyer demand, suggests that while current prices have been supported by a few optimistic buyers—likely buoyed by anticipated changes to mortgage regulations—the market could face challenges if oversupply persists.

At Royal York Property Management, we are closely monitoring these shifts in the Toronto real estate landscape. While rising prices are a positive indicator for property values, the simultaneous decline in sales and the surge in inventory signal a market in flux. Buyers and sellers alike should remain alert as external factors such as regulatory changes and broader economic conditions continue to influence market dynamics.

Source: Better Dwelling