The Greater Toronto Area real estate market continued to adjust in February 2026, with buyer activity remaining cautious and the number of homes entering the market declining. While Total Sales were lower compared to the same time last year, the drop in New Listings was even more pronounced. This shift suggests fewer homeowners are listing their properties in the current environment, which may influence market dynamics as the spring market approaches.
Sales activity across the GTA remained below last year’s levels, reflecting continued hesitation among buyers navigating economic uncertainty and affordability considerations. At the same time, the pace of New Listings entering the market slowed, tightening overall market conditions compared to early 2025. On a seasonally adjusted basis, both Total Sales and New Listings were also lower than in January.
Home prices continued to reflect the market’s broader correction. The MLS® Home Price Index benchmark declined year over year, and the Average Sales Price also softened compared to February 2025. Month over month, prices edged lower, indicating buyers are still negotiating in a market where supply remains relatively elevated relative to demand.
Despite these adjustments, the GTA housing market continues to show signs of underlying demand. Many potential buyers remain on the sidelines, waiting for greater clarity around economic conditions and for selling prices to stabilize before making purchasing decisions.
Here are the detailed statistics from February:
GTA
Average Sales Price
January 2026 to February 2026: $973,289 to $1,008,968 (+3.7%).
February 2025 to February 2026: $1,086,586 to $1,008,968 (-7.1%).
The Average Selling Price across the GTA increased from January to February, inching back up over $1M. This month-to-month increase is as close to a guarantee as you can get in the real estate business. However, compared to February last year, prices were 7.1% lower, a larger gap than the 6.5% decline in January year-over-year.
Total Sales
January 2026 to February 2026: 3,082 to 3,868 (+25.5%).
February 2025 to February 2026: 4,127 to 3,868 (-6.3%).
After falling sharply from December to January, Total Sales bounced back, jumping 25.5% month-over-month. Year-over-year sales remained lower, though, at 6.3% fewer sales than in February 2025. In fact, the 3,868 February Total Sales figure is the lowest recorded for the second month of the year.
New Listings
January 2026 February 2026: 10,774 to 10,705 (-0.6%).
February 2025 to February 2026: 13,004 to 10,705 (-17.7%).
Active Listings
January 2026 February 2026: 17,975 to 19,314 (+7.4%).
February 2025 to February 2026: 19,791 to 19,314 (-2.4%).
New Listings in the GTA remained relatively stable from January to February, but were notably lower than at the same time last year, suggesting fewer sellers are entering the market. At the same time, Active Listings increased month over month as homes continued to take longer to sell. Overall inventory remains comparable to last year, maintaining a market environment that still offers buyers a healthy level of choice.
Toronto
Average Sales Price
January 2026 to February 2026: $948,698 to $1,019,144 (+7.4%).
February 2025 to February 2026: $1,087,077 to $1,019,144 (-6.2%).
Average selling prices in the City of Toronto rose from January to February, replicating typical seasonal momentum as activity begins to increase early in the year. However, compared to February of last year, prices remain lower, indicating that the market is still adjusting while affordability conditions gradually improve for buyers.
Total Sales
January 2026 to February 2026: 1,074 to 1,491 (+38.8%).
February 2025 to February 2026: 1,540 to 1,491 (-3.2%).
Total Sales in the City of Toronto increased significantly from January to February, reflecting the usual seasonal pickup in market activity as the year progresses. Still, sales remained slightly below last year’s level, suggesting that while buyer activity is improving, overall demand is still somewhat restrained compared to early 2025.
New Listings
January 2026 to February 2026: 4,077 to 4,035 (-1.0%).
February 2025 to February 2026: 4,641 to 4,035 (-13.1%).
Active Listings
January 2025 to February 2026: 6,968 to 7,397 (+6.2%).
February 2025 to February 2026: 7,809 to 7,397 (-5.3%).
New Listings in the City of Toronto remained relatively steady from January to February. Still, they were noticeably lower than at the same time last year, indicating fewer sellers entering the market. Active Listings increased month over month, as homes spent more time on the market. Compared to last year, overall inventory is slightly lower, but buyers still have a solid range of options across many neighbourhoods.
SNLR – Sales to New Listings Ratio (January to February)
GTA: 33.3% to 33.6%.
City of Toronto: 33.9% to 34.3%.
SNLR is the amount of sales that occur (supply coming off the market) to new listings coming on (supply coming onto the market). 40-60% indicates a balanced market and under 40% is buyer’s market territory. We are squarely in buyer’s market territory for both the GTA and Toronto indicating that overall buyers have more leverage and opportunities than sellers.
Outlook
Looking ahead, the balance between New Listings and buyer demand will play an important role in shaping the market through the spring and summer. If the number of homes coming to market continues to decline while buyer confidence gradually improves, competition among buyers could increase later in the year. For now, the GTA market remains in a period of adjustment, with both buyers and sellers watching closely for signals that the next phase of market activity is taking shape.
As the market begins to bounce back, what does it hold for your situation? I can help you find out!
Thinking of moving to the next stage? Let’s chat. Send me an email (hillary@hillarylane.ca) or text/phone (416-882-4707).
