Sales, prices and listings all fell as uncertainty sidelined buyers
Sales and prices in the Greater Toronto Area resale market fell again in February, extending a correction that has rippled through everything from condos to luxury homes over the past year.
Greater Toronto Area REALTORS reported 3,868 home sales through the Toronto Regional Real Estate Board’s MLS System in February 2026, down 6.3% from a year earlier.
New listings dropped even faster, falling 17.7% to 10,705, as potential sellers also moved to the sidelines.
The pullback showed up clearly in prices. The MLS Home Price Index composite benchmark was 7.9% lower than in February 2025, while the average selling price slipped 7.1% to $1,008,968.
On a seasonally adjusted basis, both sales and new listings, along with the benchmark and the average price, were lower than in January.
“Many would-be homebuyers are waiting for selling prices to level off before moving into the market,” Toronto Regional Real Estate Board (TRREB) president Daniel Steinfeld said.
“If new listings continue to trend lower through the spring, competition between homebuyers will increase, supporting home prices and a recovery in sales.”
TRREB chief information officer Jason Mercer said the pause had become significant. “There is substantial pent-up demand in the GTA ownership market, with more than 100,000 buyers holding off on making a home purchase,” he said.
Mercer added that many buyers were still waiting for “positive news on the trade front” and clearer economic signals before re-entering the market.
TRREB chief executive officer John DiMichele said longer term stability would hinge on adding more mid-priced supply.
“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,” he said, urging federal and provincial governments to clear the way for more “missing middle” construction.
In January, home sales in the Greater Toronto Area fell 19.3% year over year to 3,082 transactions. The average selling price dropped 6.5% to $973,289. The MLS Home Price Index composite benchmark slipped 8%.
New listings were also lower, down 13.3% to 10,774, and active inventory rose 8.1% to 17,975 as properties stayed on the market longer.
For brokers and lenders, the latest numbers point to a market where activity, prices and supply all moved lower at once – an unusual combination that underscores how cautious both sides of the transaction have become.
With rates still elevated and policy responses on housing supply evolving slowly, clients are not just rate-sensitive, they are also waiting for proof that the bottom of this cycle is in before committing to new debt.
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