As we move further into 2026, the Greater Toronto Area real estate market is beginning to show early signs of tightening supply. While sales remain lower compared to last year, the number of homes coming to market has declined even more sharply—creating conditions that could lead to increased competition as the spring market approaches.
In this February 2026 Market Update, we’ll break down what’s happening across Toronto, Durham, and York Regions, how broader GTA trends are evolving, and what this means if you’re thinking about buying, selling, or simply staying informed.
Big Picture: Supply Tightening Across the GTA
According to the Toronto Regional Real Estate Board (TRREB), there were 3,868 home sales reported across the GTA in February 2026, representing a 6.3% decline compared to February 2025. During the same period, 10,705 new listings were added to the MLS® System, down 17.7% year-over-year.
Because listings declined at a greater rate than sales, overall market conditions tightened compared to last year.
On a seasonally adjusted basis, both home sales and new listings declined compared to January 2026, with listings falling faster than sales. The MLS® Home Price Index (HPI) Composite benchmark and average selling price also trended slightly lower month-over-month.
TRREB also highlighted that there is substantial pent-up demand in the market, with more than 100,000 buyers currently waiting on the sidelines for improved economic conditions and price stability before making a move.
If listings continue to remain limited heading into the spring market, we could see increased competition between buyers, which may support home prices and drive stronger sales activity later in the year.
If you’re wondering whether this environment makes sense for buyers, we explore that in detail here:
Toronto Region – February 2026
Key Stats (All Property Types):
- New Listings: 4,035 (-1.03% from January)
- Home Sales: 1,491 (+38.8%)
- Average Price: $1,019,144 (+7.4%)
- Days on Market: 36 (-20%)
Toronto experienced a noticeable increase in sales activity compared to January, while listings declined slightly. This shift suggests that buyer activity is beginning to pick up as we move closer to the spring market.
Average Prices by Property Type:
- Detached: $1,568,543 (+1.75%)
- Semi-Detached: $1,229,853 (+7.3%)
- Townhouse: $1,215,245 (+11.8%)
- Condo: $663,984 (+5.1%)
Townhomes and semi-detached properties showed some of the strongest price increases month-over-month, indicating improving demand for more affordable alternatives to detached homes.
For a look at how the market evolved leading into this year, you can revisit our previous update:
Durham Region – February 2026
Key Stats (All Property Types):
- New Listings: 1,129 (+4.15%)
- Home Sales: 454 (+10.2%)
- Average Price: $850,304 (+3.86%)
- Days on Market: 26 (-33.3%)
Durham continues to attract buyers looking for more value relative to Toronto, particularly families seeking larger homes and more space.
Homes are also selling faster across the region, with days on market dropping significantly compared to January, suggesting stronger buyer engagement.
Average Prices by Property Type:
- Detached: $959,864 (+3.72%)
- Semi-Detached: $680,540 (-1.67%)
- Townhouse: $738,812 (+3.66%)
- Condo: $518,810 (+13.8%)
This environment continues to favour buyers who are prepared and sellers who invest in strong presentation and marketing.
If you’re selling locally, especially in Pickering, this guide is worth reading:
York Region – February 2026
Key Stats (All Property Types):
- New Listings: 1,959 (-1.85%)
- Home Sales: 683 (+23.3%)
- Average Price: $1,133,471 (+2.06%)
- Days on Market: 37 (-21.3%)
York Region also experienced an increase in sales activity while inventory declined slightly. This trend suggests that buyers are slowly returning to the market as confidence improves.
Average Prices by Property Type:
- Detached: $1,467,018 (+4.7%)
- Semi-Detached: $999,147 (+0.29%)
- Townhouse: $1,052,607 (+0.64%)
- Condo: $571,250 (+1.71%)
Homes that are priced accurately and marketed strategically are still selling—others are sitting.
Interest Rates: What to Watch in 2026
Interest rates remain one of the most important factors shaping buyer behaviour in today’s housing market.
The Bank of Canada continues to hold its policy interest rate at 2.25%, providing stability after several years of significant rate changes.
From a pricing perspective, TRREB reported the MLS® HPI Composite benchmark was down approximately 7.9% year-over-year in February 2026, while the average GTA selling price was $1,008,968, representing a 7.1% decline compared to February 2025.
Despite these year-over-year adjustments, reduced inventory and strong pent-up demand could begin to support prices as we move further into the year.
For buyers and sellers alike, this reinforces the importance of making decisions based on current market data and strategy—not speculation.
What This Means If You’re Buying
- Inventory is beginning to tighten in some areas
- Negotiating power still exists compared to previous peak markets
- Opportunities remain for buyers who are prepared and decisive
However, the best opportunities go to buyers who are informed and decisive. Understanding neighbourhood-level pricing is critical.
What This Means If You’re Selling
An important shift we are beginning to see in early 2026 is renewed competition for well-presented, well-priced homes.
Across several GTA neighbourhoods—including Pickering and Durham Region—homes that are staged properly, priced correctly, and marketed effectively are attracting strong interest and, in some cases, multiple offers.
With fewer new listings entering the market and many buyers waiting on the sidelines, homes that stand out are beginning to see increased demand.
It’s important to note that this does not apply to all listings. Homes that are overpriced or poorly presented are still taking longer to sell.
Today’s market rewards sellers who:
- Price realistically
- Prepare their home properly
- Invest in professional marketing
If your goal is to sell successfully in 2026, strategy matters more than ever. Learn more here:
You can also explore homes currently attracting buyer attention:
Final Thoughts
February 2026 suggests that the GTA housing market may be gradually shifting toward tighter supply conditions. With many buyers waiting for the right moment to enter the market, reduced inventory could lead to stronger competition later in the year.
Whether you’re buying, selling, or simply watching the market, having the right information makes all the difference.
At AA Properties, our focus is always on guiding our clients with clarity, transparency, and strategy.
If you’d like to learn more about who we are and how we work, visit:
If you’re considering a move this year or want a personalized market breakdown, we’re always here to help.
Let’s move forward with confidence.
All market data provided by TRREB.
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