February 2026
The Greater Toronto Area housing market tightened in February 2026, mainly due to a drop in new listings rather than a major decline in demand.
Home sales totaled 3,868, representing a 6.3% decrease compared to February 2025. While this suggests softer activity, the more important trend lies on the supply side. New listings fell by 17.7% year-over-year to 10,705, indicating that fewer homeowners are choosing to enter the market.
This imbalance is beginning to shift overall market conditions. With supply declining faster than demand, competition is expected to increase if the trend continues into the spring market.
However, demand has not disappeared. Industry estimates suggest that over 100,000 potential buyers are currently waiting for more stable pricing and improved economic conditions before re-entering the market.
If listing activity remains low while these buyers return, the market could shift quickly. Reduced inventory combined with pent-up demand would likely lead to increased competition, upward pressure on prices, and a rebound in sales activity.
In summary, the February data points to a market in transition. While activity is currently subdued, underlying demand remains strong, and the foundation is being set for a potential pickup later in 2026.
Sources & Notes
i - Statistics Canada, Quarter-over-quarter growth, annualized.
ii - Statistics Canada, Year-over-year growth for the most recently reported month.
iii - Bank of Canada, Rate from most recent Bank of Canada announcement.
iv - Bank of Canada, Rates for most recently completed month.
v - Information supplied by TRREB