By: Falkovsky Leo

February 2026 Market Watch

Greater Toronto Area (GTA) resale housing market conditions tightened in February 2026 compared to February 2025. While sales were down year-over-year, new listings declined by a greater annual rate. The dip in new listings is in line with recent polling results from Ipsos which show listing intentions are down for 2026.

“Many would-be homebuyers are waiting for selling prices to level off before moving into the market. If new listings continue to trend lower through the spring, competition between homebuyers will increase, supporting home prices and a recovery in sales,” said TRREB President Daniel Steinfeld.

“There is substantial pent-up demand in the GTA ownership market, with more than 100,000 buyers holding off on making a home purchase. Buyers are waiting for selling prices to level off and for positive news on the trade front. Once we see both, there could be substantial momentum driving home sales in the second half of this year and into 2027,” said TRREB Chief Information Officer Jason Mercer.

GTA REALTORS® reported 3,868 home sales through TRREB’s MLS® System in February 2026 – down by 6.3 per cent compared to February 2025. New listings entered into the MLS® System amounted to 10,705 – down by 17.7 per cent year-over-year.

On a seasonally adjusted basis, February home sales and new listings were down month-over-month compared to January 2026. New listings were down by a greater monthly rate than sales.

The MLS® Home Price Index (MLS® HPI) Composite benchmark was down by 7.9 per cent year-over-year in February 2026. The average selling price, at $1,008,968, was down by 7.1 per cent compared to February 2025.

On a month-over-month seasonally adjusted basis both the MLS® HPI Composite and the average selling price were down compared to January 2026 figures.

“The long-term sustainability of the GTA housing market depends upon the industry’s ability to bridge the gap between condominium apartments and traditional single-family homes. TRREB, with its partners in the Housing Advancement Coalition, is urging the Federal and Provincial Governments to take immediate targeted action to pave the way for increased ‘missing middle’ home construction,” said TRREB Chief Executive Officer John DiMichele. 

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By: Falkovsky Leo

Is Toronto Becoming a Buyer’s Market?

Is Toronto Becoming a Buyer’s Market?

1. Prices & Sales Activity Still Under Pressure

Average home prices in Toronto are down year-over-year, with many segments softening significantly compared to previous years. According to recent market reports, average sold prices have declined from 2025 levels and continue to trend lower in early 2026. 

  • Overall average prices have eased, influenced partly by shifts in the types of homes selling and a growing inventory. 
  • Detached and multi-bedroom homes have seen moderate declines, while some larger and luxury segments are down even more. 

Sales volumes remain below historic norms, suggesting continued caution among buyers. 

📊 What this means: Buyers are finding more negotiating power and options, while sellers may need to be more flexible on price.


📦 2. Inventory & Market Balance Shifting

The market has been moving toward more balanced or buyer-favoured conditions:

  • Listings have increased, meaning more choice for buyers than in previous tight markets. 
  • Elevated inventory also tends to slow price growth and extend marketing times.

📉 Mortgage rate shifts and winter weather also contributed to slower activity, keeping supply high relative to buyer demand. 


🏢 3. Condo Market Still Challenged

The condo segment — once a top performer — is experiencing continued softness:

  • Pre-construction condo sales have dropped sharply, with significantly fewer new units changing hands compared to past years. 
  • This points to weaker investor demand and a cooling of speculative buying.

Rentals and lease-ups have softened, with some areas reporting longer times on market and downward pressure on rents. 


🧭 4. Outlook: Mixed but Stabilizing

Industry forecasts for 2026 are cautious:

  • Some organizations expect the market to remain subdued, with modest recovery potential as interest rates and affordability trends evolve. 
  • Others caution that Toronto may still face downward pressure on prices and slower demand before broader improvement arrives. 

Affordability remains a key issue, even as conditions ease slightly. 


📍 What This Means for Buyers & Sellers

Buyers

✔ More inventory = less competition
✔ Better negotiating leverage vs previous tight markets
✔ Opportunity to revisit price expectations

Sellers

⚠ May need pricing strategy adjustments
⚠ Longer time on market is possible

⚠ Smart staging and marketing are crucial

Investors

📉 Condo performance may limit near-term strong returns
📊 Consider areas with rental demand or redevelopment potential


📌 Summary: A Market in Transition

The Greater Toronto real estate market in early 2026 shows signs of cooling, higher inventory, and slower sales, with price pressures continuing across many property types. While recovery isn’t out of the question, conditions remain more balanced or buyer-friendly than in recent peaks, with affordability and economic factors shaping buyer behaviour. 



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