February activity reflected continued buyer caution and a noticeable decline in new listings, which tightened overall market conditions across the Greater Toronto Area (GTA), according to the Toronto Regional Real Estate Board.
While home sales were down 6.3% year-over-year, new listings declined by a much larger 17.7%, suggesting that supply is shrinking faster than demand. This shift could lead to increased competition among buyers if listing activity remains limited heading into the spring market.
Home prices adjusted moderately compared to last year. The MLS Home Price Index Composite benchmark declined 7.9% year-over-year, while the average selling price was $1,008,968, down 7.1%. The gradual nature of these adjustments suggests the market is rebalancing rather than experiencing significant downward pressure.
According to Jason Mercer, more than 100,000 potential buyers remain on the sidelines, waiting for greater price stability and improved economic confidence. Once those conditions improve, this pent-up demand could support stronger market activity later in 2026 and into 2027.
For now, the GTA market remains in a transitional phase, where reduced inventory is beginning to tighten conditions while many buyers continue to take a measured approach.
Subscribe to my newsletter for monthly GTA market updates, local trends, and data-driven insights to help you stay ahead.
Comments:
Post Your Comment: