February 2026 Real Estate Market Update
The Greater Toronto Area (GTA) housing market saw new supply contract in February by 17.7% year-over-year.
This decline is consistent with recent polling showing a decrease in listing intentions for 2026. Still, inventory levels remain elevated to historical norms.
At the same time, sales activity moderated in February. Although down 6.3% compared to February 2025, this was significantly better than the 19.3% year-over-year sales drop experienced in January.
The average selling price across the GTA was $1,008,968 in February, representing a 7.1% downward adjustment from the same month last year.
Month-over-month, the average home price was up 3.7%. Despite this, average prices continue to sit at their lowest levels since early 2021.
This trend is further reflected in the average days on market, which stood at 36 days. While that’s an improvement from the 45 days recorded in January, it remains much higher than the 28-day average seen in February of last year, indicating a market that continues to move at a slower, more deliberate pace.
The average price of a detached home was $1,325,654. Aside from August 2025, this represents the lowest average price since December 2020. Active listings for this sector remain higher both year-over-year and month-over-month, contributing to increased choice for those currently active in the market.
Semi-detached properties have seen their average price drop 4.9% year-over-year to $1,027,376, and sales fall 9.2% over the same time period.
Sales of townhomes has remained relatively stable, with only a 2.4% year-over-year decline. However, the average price slid 14.8% to $844,862 in February, from the same month last year.
A total of 1,088 condominium apartments changed hands at an average price of $626,650. This is the lowest average price recorded for this segment since January 2021. While active listings are slightly lower than last February, available inventory remains exceptionally high when measured against long-term historical averages.
The February data highlights a market characterized by high inventory and a continued period of price correction. Although a pool of more than 100,000 potential buyers remains on the sidelines, current activity is being shaped by high borrowing costs — fixed mortgage rates have risen dramatically since the start of the Iran war, driven by rising oil prices and higher bond yields — and the Bank of Canada holding its overnight lending rate steady at 2.25% amid global tensions and economic uncertainty. As the market moves toward the spring, the trajectory of the GTA housing sector will likely depend on whether new supply continues to trend lower, potentially offsetting the high levels of existing inventory.
If you would like to know how the real estate market performed in a specific neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.
