Toronto Regional Real Estate Board February 2026 Market Report: Sales Down Amid Tightening Conditions

Toronto Regional Real Estate Board — February 2026

In February 2026, the Greater Toronto Area (GTA) experienced a 6.3% decline in home sales year-over-year, with 3,868 transactions reported. New listings also fell significantly, down 17.7% to 10,705, contributing to a balanced market environment.

Market Analysis

The GTA housing market in February 2026 shows signs of tightening, as the decrease in new listings outpaces the decline in sales. This trend aligns with recent Ipsos polling indicating that potential sellers are hesitant to enter the market, leading to increased competition among buyers. The MLS® Home Price Index (HPI) Composite benchmark price has decreased by 7.9% year-over-year, reflecting a cooling market as buyers await price stabilization before making purchases. Despite the drop in sales, the ongoing demand remains substantial, with over 100,000 potential buyers currently holding off on home purchases.

Property Type Analysis

While specific benchmark prices and sales figures for detached, attached/townhouse, and apartment properties are not available for February 2026, the overall market dynamics suggest that all property types are impacted by the current trends. The decline in new listings across the board indicates that competition may intensify, particularly for entry-level homes and condominiums, which could see a more pronounced effect on pricing as buyers compete for limited options.

Regional Highlights

Regionally, the GTA continues to face challenges with housing supply, as the number of new listings has decreased significantly compared to the previous year. This trend is expected to create pressure on home prices if demand remains steady or increases. The call for increased 'missing middle' home construction by TRREB leadership highlights the need for more diverse housing options to meet the demands of a growing population.

For Buyers

For prospective buyers, patience may be key in the current market. With prices expected to stabilize, buyers are encouraged to monitor market conditions closely and consider their long-term needs rather than rushing into a purchase. Engaging with a knowledgeable REALTOR® can provide insights into emerging opportunities as the market evolves.

For Sellers

Sellers should consider the current market dynamics when listing their properties. With new listings down significantly, there may be an opportunity to attract buyers who are eager to purchase in a competitive environment. Pricing homes strategically and ensuring they are well-presented can help sellers capitalize on the existing demand.