August 2026 GTA Housing Market
- August sales of 5,057 units were down 2.1% versus August 2025 and 23.6% below the 10-year average for the month (6,622 units).
- New listings of 12,075 fell 14.1% year over year and were 4.6% below the 10-year average.
- The MLS® Home Price Index Composite benchmark declined 4.5% year over year, while the average selling price of $993,410 was down 2.7%.
- The main headwinds are trade war concerns with the United States and the prospect of higher inflation and borrowing costs ahead.
Market Highlights
| Aug 2025 | Aug 2026 | Change | |
|---|---|---|---|
| Resale home sales | 5,168 | 5,057 | -2.1% |
| Average resale price | $1,021,300 | $993,410 | -2.7% |
| New listings | 14,052 | 12,075 | -14.1% |
Rising Bond Yields Put Pressure on Mortgage Rates
Canadian bond yields moved higher over the summer, putting upward pressure on fixed mortgage rates. The 5-year Government of Canada bond yield, a key benchmark for fixed mortgage pricing, recently climbed to around 3.3%, up from roughly 3.0% at the end of June.
Competitive 5-year fixed rates are currently around 4%, though rates vary by borrower and mortgage type. If yields stay elevated, further declines in fixed rates may be difficult in the near term. Variable mortgages follow the Bank of Canada’s policy rate more directly, which sits at 2.25%, keeping variable borrowing costs relatively stable.
For buyers the picture is mixed. Mortgage rates are below their recent peaks, but higher bond yields could limit further improvements in affordability.
Thinking of buying, selling or investing in the GTA? Contact Sergei Mendelev, Sales Representative, HomeLife Frontier Realty Inc., Brokerage, at 416-721-3316 or smendelev777@gmail.com for a free home evaluation or a private consultation.
Statistics courtesy of the Toronto Regional Real Estate Board. Content provided by Mission Response Inc. The information is obtained from sources believed to be reliable, but accuracy cannot be guaranteed and it is not legal, financial or professional advice. Not intended to solicit buyers or sellers currently under contract with a brokerage.



