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GTA Housing Market Shows Tighter Conditions; Sales Activity May Improve Later in the Year
March, 2026
The housing market across the Greater Toronto Area continued to show signs of adjustment in February 2026, with market conditions tightening compared to the same period last year. While overall home sales were lower than February 2025, the number of new listings coming onto the market declined even more sharply. This reduction in new supply has contributed to tighter inventory levels across the region.
Recent consumer polling conducted by Ipsos suggests that fewer homeowners are planning to list their properties in 2026. This shift in seller behaviour may continue to limit the amount of available housing inventory in the coming months, particularly as the market moves into the traditionally active spring season.
Industry experts believe that a significant number of buyers are currently waiting on the sidelines. Many potential homebuyers appear to be holding off until selling prices stabilize and broader economic conditions become clearer. If listing activity remains limited through the spring market, competition among buyers could increase, which may help support prices and gradually lead to a recovery in sales activity.
There is also evidence of substantial pent-up demand in the region’s ownership market. According to market analysts, more than 100,000 prospective buyers in the GTA are delaying home purchase decisions for the time being. Many are waiting for clearer signals around pricing trends as well as broader economic developments, including trade conditions that could influence consumer confidence. Once these factors begin to stabilize, the market could see stronger momentum in the second half of the year and potentially continuing into 2027.
Looking at the latest numbers, REALTORS® across the GTA reported 3,868 home sales through the MLS® System in February 2026. This represents a decline of approximately 6.3 percent compared to February of last year. At the same time, the number of new listings entered into the MLS® System totaled 10,705, which marks a much sharper decline of 17.7 percent year-over-year.
On a month-to-month basis, both sales and new listings also decreased compared to January 2026 when adjusted for seasonal factors. However, listings declined at a greater rate than sales, which contributed to the tightening of overall market conditions.
Home prices also experienced some adjustment during this period. The MLS® Home Price Index composite benchmark was approximately 7.9 percent lower compared to February 2025. The average selling price across the GTA reached $1,008,968, representing a decline of about 7.1 percent year-over-year. When viewed on a seasonally adjusted month-to-month basis, both the benchmark price and the average selling price were slightly lower compared to January figures.
Despite these adjustments, long-term market sustainability remains closely tied to housing supply and the types of homes being built across the region. Industry leaders have pointed to the growing gap between condominium apartments and traditional detached homes as a key challenge in the housing market.
To address this issue, real estate industry groups and housing stakeholders are encouraging federal and provincial governments to introduce targeted measures that would support the construction of “missing middle” housing. Expanding housing options such as townhomes, duplexes, and low-rise multi-unit properties could help increase supply and improve affordability across the Greater Toronto Area.
As the market moves further into 2026, improved borrowing conditions and increased economic confidence could bring more buyers back into the market. If supply remains limited while demand begins to return, the GTA housing market could see stronger sales activity in the second half of the year.
Notes on Data : Statistics are derived from regional MLS® systems and industry market reports, including but not limited to the Toronto Regional Real Estate Board (TRREB), Cornerstone Association of REALTORS®, and other local real estate board data sources. Market statistics are compiled from publicly available housing dashboards and monthly reports covering their respective service areas.
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Toronto Real Estate Board (TRREB); All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested
All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating