May 2026 Market Report

In this May market update, Chris Kapches, CEO of Chestnut Park Real Estate, examines the latest Toronto and GTA housing data and explains why the market continues to show gradual improvement despite ongoing economic and geopolitical uncertainty.

Chris Kapches revisits the "Inventory Paradox," where both buyers and sellers remain in a wait-and-see position. Buyers continue looking for signs that the market has reached its bottom, while many sellers are choosing to hold rather than accept today's pricing environment, contributing to a significant decline in new listings.

Key highlights from the May 2026 Toronto & GTA market:

• 6,583 homes sold (Up 6.3% year-over-year).

• Average home price: $1,069,700 (Down 4.6% from May 2025).

• New Listings: 17,698 properties (Down 18.9% year-over-year).

• Average days on market: 27 days (Compared to 25 days in May 2025 and 45 days in January 2026).

• Market Divide: The 416 continues to outperform the 905, with smaller price declines than surrounding regions.

Despite the average price being down 4.6% from last year, Chris Kapches points to several positive developments that have emerged since the beginning of 2026, including rising sales activity and a significant reduction in days on market.

In this report, Chris Kapches analyzes:

• Why buyers and sellers remain in a wait-and-see environment.

• How mortgage stress tests are helping homeowners manage higher renewal rates.

• Why the 416 continues to outperform the 905 in the post-pandemic market.

• What a comparison to May 2019 reveals about today's affordability challenges.

• Why semi-detached homes in the 416 continue to perform exceptionally well.

While uncertainty remains, Chris Kapches believes the market is moving in a positive direction and expects conditions to continue improving through the second half of 2026 and into 2027.

Video Commentary