Sandra Jackson Real Estate

Toronto Real Estate Update: February 2026 Market Tight as Supply Dips

The Greater Toronto Area (GTA) resale housing market is showing signs of tightening as we move through early 2026. While overall sales activity has softened, a significant drop in new listings is creating more competitive conditions for those currently in the market.

Key Market Indicators at a Glance
The February 2026 data reveals a market in transition, with several key metrics shifting since last year:

Sales Activity: GTA REALTORS® reported 3,868 home sales in February 2026, a 6.3% decrease compared to February 2025.

New Listings: Supply saw a much sharper decline, with only 10,705 new listings entered—a 17.7% drop year-over-year.

Average Selling Price: The average price for all home types combined was $1,008,968, down 7.1% from $1,086,586 in February 2025.

Days on Market: Properties are staying on the market longer, with the average listing days on market (LDOM) rising to 36 days, compared to 27 days a year ago.

GTA Market Update

GTA Market Update - Sandra Jackson real estate Toronto Due to increased interest rates, the real estate market in the GTA has slowed right down. Listings are down, sales are down, and buyers are hesitant.      

Drop in January's inflation rate was more than expected.

Drop in Inflation Rate more than expected - Sandra Jackson real estate Toronto Canada’s Inflation Rate has dropped for the seventh straight month, and January’s drop in rate was larger than expected – 5.9% vs 6.2%. This is good news. Experts predict the next rate for February will be 5.2%. This will impact the BOC rate later this year.