#MarketSnapshot
The Greater Toronto Area (GTA) resale housing market experienced notable tightening in February 2026 compared to the same period last year. While home sales were slightly down year-over-year, new listings fell at a much sharper rate, signaling increasing competition among buyers and ongoing supply constraints.
Fewer Listings, More Competition
According to recent data from the Toronto Regional Real Estate Board (TRREB), new listings in February 2026 totaled 10,705, marking a 17.7% decrease compared to February 2025. Meanwhile, home sales reached 3,868, down 6.3% year-over-year.
The decline in listings aligns with findings from Ipsos polling, which shows many homeowners are delaying listing their properties in 2026. TRREB President Daniel Steinfeld noted:
“Many would-be homebuyers are waiting for selling prices to level off before moving into the market. If new listings continue to trend lower through the spring, competition between homebuyers will increase, supporting home prices and a recovery in sales.”
Pent-Up Buyer Demand
TRREB Chief Information Officer Jason Mercer highlighted the strong demand from buyers sitting on the sidelines:
“There is substantial pent-up demand in the GTA ownership market, with more than 100,000 buyers holding off on making a home purchase. Buyers are waiting for selling prices to level off and for positive news on the trade front. Once we see both, there could be substantial momentum driving home sales in the second half of this year and into 2027.”
Market Prices: Slight Decline
The MLS® Home Price Index (HPI) Composite benchmark decreased 7.9% year-over-year in February 2026, while the average selling price dropped 7.1% to $1,008,968. Month-over-month, both metrics also showed a slight decline compared to January 2026, reflecting ongoing adjustments in the market.
Long-Term Market Outlook
Sustainability in the GTA housing market depends on bridging the gap between condominium apartments and traditional single-family homes. TRREB CEO John DiMichele emphasized the importance of addressing the “missing middle” housing:
“TRREB, with its partners in the Housing Advancement Coalition, is urging the Federal and Provincial Governments to take immediate targeted action to pave the way for increased ‘missing middle’ home construction.”
Key Takeaways for Buyers and Sellers
- Fewer listings mean higher competition: Buyers should be prepared to act quickly.
- Average prices are slightly down: Sellers may still achieve strong results, especially for well-priced properties.
- Pent-up demand could drive future sales: The market may see renewed activity later in 2026 and into 2027.
- Policy support is crucial: Efforts to increase mid-market housing could impact long-term affordability and options for buyers.
The GTA resale market continues to evolve, and understanding these trends is essential for anyone looking to buy or sell in 2026. Staying informed will help you make strategic decisions in a competitive market.
