Market Update: Toronto Real Estate Market Update – February 2026 | GTA Housing Market Report

Toronto Real Estate Market Update – February 2026

February’s market numbers tell a more nuanced story than the headline sales figures suggest. While overall sales activity declined slightly compared to last year, the bigger shift is happening on the supply side — and that’s where the market signal really sits.

Across the Greater Toronto Area, 3,868 homes sold in February, representing a 6.3% decrease compared to February 2025. At first glance, that might appear to suggest weakening demand, but sales numbers alone don’t tell the full story.

The more important number to watch right now is inventory.

Listings Are Falling Faster Than Sales

New listings in the GTA fell 17.7% year-over-year, while active listings declined another 2.4%. This indicates that many potential sellers are stepping back and waiting for clearer economic signals before bringing their homes to market.

For buyers, this currently means less competition in the short term. However, it also means that the overall supply of homes available is tightening — which can quickly shift market dynamics once demand picks up again.

Prices Are Beginning to Stabilize

The average GTA home price in February came in at $1,008,968, representing a 7.1% decline from February of last year. However, this number also reflects an important shift.

In January, the average price briefly dipped below the $1 million mark for the first time in five years. February’s rebound above that level suggests that prices may be beginning to find a floor after the market adjustments we’ve seen over the past year.

A Large Pool of Buyers Is Still Waiting

One of the most important factors shaping the market right now is the large number of buyers who remain on the sidelines. Many are waiting for clearer signals around interest rates, inflation, and broader economic uncertainty before making a move.

Industry estimates suggest that over 100,000 potential buyers are currently waiting for the right moment to enter the market.

When confidence begins to return, those buyers are unlikely to trickle back slowly. Instead, they are likely to re-enter the market quickly, competing for what may be a smaller pool of available listings if supply continues to remain tight.

Strategy Matters More Than Timing

Markets rarely move in perfectly predictable cycles. Instead of trying to time the exact bottom or top, buyers and sellers tend to see the best results when they approach the market with a clear strategy based on current conditions.

Right now, we are seeing a market that is adjusting and stabilizing, with opportunities for both buyers and sellers who are prepared and informed.

If you’re thinking about buying, selling, or simply want to better understand what these numbers mean for your situation, feel free to reach out anytime.

🎥 Watch the February market update below for a full breakdown of the numbers and what they could mean for the Toronto real estate market moving forward.

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