Fewer Homes For Sale, And What That Could Mean This Fall

August’s numbers are in, and the theme is scarcity. Sales slipped just over two per cent, but new listings fell 14.1 per cent, and the number of homes actually available to buy is down more than eleven per cent from last year. TRREB’s read is that less choice and more competition between buyers could bring price growth back in the months ahead.

People are looking, but they are not forcing anything. Buyers are doing more homework before they commit, and sellers need to be careful not to treat every objection as a pricing problem, because sometimes a property simply is not the right fit.

Sales Eased In August, But Not For Lack Of Buyers

GTA REALTORS reported 5,057 sales in August, down 2.1%, with TRREB pointing at a shortage of choice rather than a shortage of demand

GTA REALTORS reported 5,057 home sales through the MLS System in August 2026, down 2.1 per cent from August 2025. Month over month, on a seasonally adjusted basis, sales slipped slightly from July while new listings rose. Measured against last August, the pattern runs the other way, and that is the comparison that matters here.

TRREB’s own framing is worth repeating: the number of transactions was arguably limited by less choice in some neighbourhoods. That is a different problem from weak demand, and it points somewhere different too.

Chief Information Officer Jason Mercer noted that the overall economy and job creation have been positive, and that the main hold-back for many households has been concern about trade with the United States and the possibility of higher inflation and borrowing costs in future. Sentiment, in other words, more than capacity.

The Number Of Homes For Sale Fell Again

New listings dropped 14.1% and active listings 11.3%, and that is what is quietly moving the balance

Supply is where August moved. New listings came in at 12,075, down 14.1 per cent from a year earlier, and active listings finished the month at 24,482, down 11.3 per cent. Sales fell only 2.1 per cent over the same stretch.

Across the GTA, homes still sold at about 97 per cent of asking with roughly 4.6 months of inventory, so the market as a whole remains reasonable to negotiate in. Those are averages, though, and several districts are already running considerably tighter.

TRREB President Daniel Steinfeld framed the trade-off directly: if inventory tightens and prices begin to rise, some buyers may face a choice between waiting for greater economic certainty and buying before prices move higher. He also noted that improving conditions for sellers could bring more listings back to market.

Prices Are Still Below Last Year, But They Have Stopped Falling

The average GTA price was $993,410 in August, down 2.7% year-over-year and essentially flat month to month

The average selling price came in at $993,410 in August 2026, down 2.7 per cent from $1,021,300 a year earlier. The MLS Home Price Index Composite benchmark, which adjusts for the mix of homes sold, was down 4.5 per cent year-over-year.

The month-to-month picture is steadier. On a seasonally adjusted basis the HPI benchmark was essentially flat compared with July, and the average selling price edged up over the previous month.

Homes are taking a little longer to move. Average days on market ran 35 from the current listing and 51 from the property’s original listing date, up from 33 and 49 last August. The market is not accelerating. On this evidence, it has stopped sliding.

Detached Held Its Ground, Townhouses Took The Hit

Detached sales edged up 0.5% in August while townhouse sales fell 9.5% and prices 8.6%, the widest split of the four housing types

August diverged sharply by housing type. Detached sales across the GTA rose 0.5 per cent year-over-year to 2,399, with the average price off 1.8 per cent at $1,288,669. Semi-detached sales rose 0.9 per cent, though the average price fell 5 per cent to $931,665.

Townhouses moved the other way. Sales dropped 9.5 per cent to 832 and the average price fell 8.6 per cent to $786,817. Condo apartments landed in between, with sales down 2.6 per cent to 1,330 and the average price down 3.6 per cent to $617,593.

The gap between a condo and a detached home now sits at about $671,000 across the GTA. Inside the 416 the spread is wider still, with condos averaging $651,648 against $1,525,749 for detached.

The Bank Of Canada Held Again On September 2

The overnight rate stays at 2.25%, and the next decision is not due until October 28

The Bank of Canada held its overnight policy rate at 2.25 per cent on September 2, leaving the Bank Rate at 2.5 per cent and the deposit rate at 2.20 per cent.

The economy behind that decision has been holding up. GDP grew 3.3 per cent in the second quarter, with consumer spending, housing activity, exports and business investment all strengthening, and the unemployment rate edged down to 6.4 per cent in July. The Governing Council signalled it will keep assessing whether the recovery is sustainable, with higher energy prices and new US tariffs adding uncertainty on inflation.

For borrowers this is continuity rather than news. TRREB’s August tables show prime at 4.5 per cent and five-year fixed mortgages near 6.09 per cent. The next announcement is October 28.

C03 By The Numbers: Forest Hill South To Oakwood Village

99% of list and 4.2 months of inventory, the closest-to-asking corner of Toronto Central in August

In August 2026, TRREB district C03 recorded 34 sales at a median price of $1,251,500 and an average of $2,290,894. Homes sold at 99 per cent of list, with 4.2 months of inventory and about 35 days on market. The district covers Forest Hill South, Yonge-Eglinton, Humewood-Cedarvale and Oakwood Village.

That 99 per cent is the highest sale-to-list ratio of any district in Toronto Central this month. Toronto Central as a whole sold at 96 per cent of list with 5.1 months of inventory, and the City of Toronto at 97 per cent and 4.6 months. C02, the Annex and Yonge-St. Clair, sat at 95 per cent and 5.8 months. On inventory alone C03 is not the tightest in the area, C10 came in at 3.8 months and C04 at 3.9, but neither of those matched C03 on how close homes came to their asking price.

The distance between C03’s median and its average shows how much range the district holds, from Forest Hill South at the top down to Oakwood Village and Humewood-Cedarvale. A 99 per cent sale-to-list ratio across that whole spread suggests sellers here are meeting the market rather than testing it.

The Listing Looked Good. Then We Looked At The Map

A good house still has to make sense in its surroundings

It is easy to start a search inside the listing itself: price, rooms, renovations, photographs.

Before a buyer got too attached to one recent option, we looked past the property and noticed a major transit facility at the end of the street. That does not make a house a bad choice on its own. It changes the questions worth asking, about traffic, noise, future use, resale, and how the street actually feels at different hours of the day.

That kind of context rarely appears on a feature sheet. A house can satisfy every requirement inside and still deserve a closer look outside. Some of the most useful due diligence happens before you ever walk through the front door.

Currently Available: 54 ½ St Patrick Street

The Half House at Queen and University, 2,799 square feet with its own front door and its own backyard

54 ½ St Patrick is the narrow Victorian at Queen and University that survived when the rest of its row came down in the 1950s. It is available to lease as an entire freestanding building: about 2,058 square feet above grade across three levels, plus a 741 square foot lower level that can be let separately from the floors above.

Elevator, air conditioning, sprinklers, a private backyard, and no shared lobby. $6,495 a month net, plus additional rent and utilities, on a three to five year term with flexibility on both length and possession.

See the full listing and photos

Currently Available: 18 Shorncliffe Avenue

A legal five-plex in Casa Loma, $3,750,000 against $156,812 of gross annual income

18 Shorncliffe Avenue sits on the corner of Spadina Road: 1918 brick, 4,839 measured square feet over four levels, five self-contained units, all five tenanted on long-term leases. There is no vacant possession on closing and no management contract for a purchaser to assume or terminate.

Five separate hydro meters, so tenants pay their own electricity, and three parking spaces including an attached garage. The wiring, plumbing, windows, boiler, air conditioning and front roof were all replaced between 2013 and 2015. Asking $3,750,000. Viewings need 24 hours’ notice, which the tenancies require.

See the full listing and photos

Currently Available: 156 Logan Avenue, Suite 131

A two-level townhouse with its own street door, 1,401 square feet at Wonder Condos in Leslieville, asking $1,180,000

Suite 131 at 156 Logan Avenue is a two-storey townhouse inside Wonder Condos, the reimagined Wonder Bread factory in Leslieville. It is entered from the street rather than through a lobby and an elevator, which gives it the feel of a house with the services of a full building behind it.

Two bedrooms plus a flexible den, three bathrooms, about 1,401 square feet inside and 226 square feet of private outdoor space across a ground-floor terrace and a second-floor balcony. Owned underground parking and locker. Maintenance is $905.35 a month and 2026 taxes are $6,460.75. The unit is vacant, with possession flexible at 30 to 60 days.

See the full listing and photos

August was a month where the supply side did the talking. Fewer homes for sale, sales down only slightly, prices flat month to month, and rates holding steady. If that combination continues, the negotiating room buyers have had will keep narrowing quietly rather than dramatically.

All market figures are from the Toronto Regional Real Estate Board Market Watch for August 2026, released September 3, 2026, and the Bank of Canada rate announcement of September 2, 2026.