GTA housing market tightens in February as fewer sellers list and buyers wait

A high degree of caution from both buyers and sellers defined the February GTA housing market, an extension of the slow conditions that have kicked off 2026. According to the latest report from the Toronto Regional Real Estate Board (TRREB), sales were lower than this time last year, as many buyers continued to hang back and wait for clearer signs that prices have steadied. GTA home sales fell to 3,868 transactions in February 2026, down 6.3% compared to the same month last year. 

The bigger shift, however, came from the supply side as sellers are increasingly choosing to not list their homes amid slow conditions. New listings fell to 10,705, down 17.7% year over year, a steeper decline than sales. That gap is what TRREB pointed to when it said market conditions “tightened” compared to February 2025, even though overall activity remained subdued. TRREB tied this pullback to softer seller appetite, as a recent Ipsos polling showed listing intentions are down for 2026, suggesting fewer homeowners plan to bring their properties to market this year. 

Prices continued to move lower in February

TRREB reported that the MLS® Home Price Index (HPI) Composite benchmark fell 7.9% year over year, signalling that typical home values across the GTA remain lower than they were last winter. The average selling price also declined 7.1% compared to February 2025, coming in at $1,008,968. The softer pricing wasn’t just an annual comparison, either. On a seasonally adjusted month-over-month basis, both the benchmark and the average selling price moved lower compared to January 2026. 

Toronto and the 905 both slow down, but the suburbs still lead on volume

February’s slowdown wasn’t isolated to one part of the region — both Toronto and the 905 saw fewer sales than last year — but the 905 continued to do most of the heavy lifting on activity. Of the 3,868 total GTA sales in February, the 905 accounted for about 61%, compared to the 39% sales in Toronto.

Prices also stayed relatively close across both areas, hovering around the $1M mark. Toronto’s average selling price came in at $1,019,144, down 6.4% year over year, while the 905 averaged $1,002,586, down 7.6%. Fresh supply pulled back meaningfully across the board, with Toronto seeing a slightly larger drop. Toronto saw 4,035 new listings in February, down 19.2% from last year, while the 905 posted 6,670, down 16.8%. 

Low-rise prices fell the most, while condo activity stayed weak

February’s softer market showed up differently depending on what buyers were shopping for. Across the low-rise segment, detached homes saw the biggest price drop, with the average GTA detached price down 8.2% year over year to $1,325,654. Toronto’s detached market saw the sharpest adjustment, with the average price falling 11.4% to $1,568,543, compared to a 7.5% decline in the 905. Detached sales held up relatively better than other segments, down 3.9% year over year to 1,683.

Other low-rise categories also saw year-over-year price declines. Semi-detached homes averaged $1,027,376 (-5.8% YoY) and townhouses averaged $844,862 (-7.2%), keeping the broader low-rise market on a downward track compared to last winter. Condo apartments remained the softest segment for demand. GTA condo sales fell by 12% YoY to 1,088 transactions in February, with declines in both Toronto (-12.3%) and the 905 (-11.5%). Prices also softened, with the average GTA condo price down 8.8% year over year to $626,650. 

The “missing middle” problem is still the long-term pressure point

Beyond the month-to-month shifts in sales and prices, TRREB highlights a deeper issue shaping the region’s market: the gap between condominium apartments and traditional single-family homes. CEO John DiMichele argued that the long-term health of the GTA housing market depends on better bridging that gap, which is often described as the “missing middle” — housing options like townhomes, multiplexes, and other ground-oriented homes that sit between high-rise condos and detached houses.

For buyers, the impact is practical. When the jump from a condo to a detached home feels financially unrealistic, it limits “step-up” options and keeps households stuck longer in homes that no longer fit their needs. For the broader market, it can create bottlenecks: fewer move-up buyers means fewer listings released at the entry level, which can restrict overall flow even when demand is there.

Pent-up demand could return in the second half of 2026

TRREB’s outlook suggests the current slowdown is being driven more by timing than a lack of interest. Chief Information Officer Jason Mercer said there is “substantial pent-up demand” in the GTA ownership market, with more than 100,000 buyers currently holding off on making a purchase. Many of those buyers are waiting for two things- a clearer sign that selling prices have levelled off, and more positive news on the trade front. If both come into place, Mercer noted that the market could see meaningful momentum build in the second half of 2026, potentially carrying into 2027.