The Toronto real estate market experienced its strongest month of the year in April, with home sales reaching their highest level since the start of 2026. According to the latest data from the Toronto Regional Real Estate Board (TRREB), 5,946 homes were sold last month, representing a 7% increase compared to April 2025. This uptick comes as the market shows signs of tightening, potentially drawing hesitant buyers back into the fray.
Supply Constraints and Market Dynamics
While sales rose, the number of new listings dropped significantly. New listings in April totaled 9.3% fewer than the same period last year, contributing to a tighter supply environment. TRREB president Daniel Steinfeld noted that buyers have been taking advantage of more affordable conditions, with lower home prices and reduced borrowing costs. "If market conditions continue to tighten and home prices level off, this could be a signal to intending homebuyers who remain on the sidelines," Steinfeld said.
Price Trends and Buyer Activity
Despite the increase in sales, home prices continued to decline. The MLS Home Price Index composite benchmark fell 6.6% year-over-year, while the average selling price dropped 4.9% to $1,051,969. However, the market is shifting further into buyers' territory, as the average number of days on market increased to 43 days in April, up from 31 days in March and 16% longer than April 2025.
TRREB chief information officer Jason Mercer attributed the relatively subdued early spring activity to global instability. "More certainty on the trade front and an easing in geopolitical tensions would result in further improvements in market activity," Mercer stated.
Affordability Challenges Persist
Despite lower prices and borrowing costs, affordability remains a concern. Industry groups argue that regulatory hurdles and increasing development levies are holding back supply and keeping prices higher than they would otherwise be. TRREB CEO John DiMichele highlighted the board's recent policy report, "Removing Roadblocks: Tackling Municipal Barriers to Housing Supply and Affordability in Ontario," which outlines reforms needed to build more homes and improve affordability.
The report calls for provincial policy changes to address municipal barriers, aiming to increase the supply of the right types of homes. As the market continues to evolve, all eyes are on whether the tightening conditions will lure more buyers off the sidelines in the coming months.
