Home sales across the Greater Toronto Area declined in February, along with new listings and selling prices, as many potential buyers remain on the sidelines waiting for clearer signals that the market has reached its lowest point.
According to the Toronto Regional Real Estate Board (TRREB), 3,868 homes were sold in February, representing a 6.3% decrease compared to the same month last year. Sales were also down 1% compared to January on a seasonally adjusted basis.
Home prices also continued to soften. The average selling price dropped 7.1% year-over-year to $1,008,968, while the benchmark price, which reflects the typical home, declined 7.9% compared to February 2025. Both measures also decreased slightly compared to January.
TRREB president Daniel Steinfeld noted that many buyers are waiting for prices to stabilize before entering the market.
“Many would-be homebuyers are waiting for selling prices to level off before moving into the market.”
Market supply also tightened last month. New listings fell 17.7% year-over-year to 10,705, while total active listings declined 2.4% to 19,414 across the GTA.
If listing activity continues to remain low through the spring market, Steinfeld believes buyer competition could intensify, potentially pushing prices higher and increasing sales activity.
TRREB chief information officer Jason Mercer added that some buyers are also waiting for positive developments related to international trade and economic conditions.
Mercer estimates that more than 100,000 potential buyers are currently waiting on the sidelines, creating significant pent-up demand in the housing market.
“If we see improving economic conditions along with stabilized home prices, we could see strong momentum in home sales during the second half of the year and into 2027,” Mercer said.
Industry professionals are also observing signs that the market may already be tightening. Jessica Hammell of Real Broker Ontario noted that although overall activity has slowed, well-priced homes in desirable areas are still attracting multiple offers, and in some cases even pre-emptive offers.
In the City of Toronto, 1,491 homes were sold in February, down 5.3% compared to last year. In the rest of the GTA, sales fell 6.9% to 2,377 transactions.
All property types experienced lower sales compared to a year ago:
- Condos: down 12%
- Semi-detached homes: down 9.2%
- Detached homes: down 3.9%
- Townhouses: down 2.4%
Despite the slowdown, buyers currently active in the market may benefit from the reduced pace of competition.
Some experts suggest that trying to time the exact bottom of the market can be difficult. Buyers who act earlier may gain an advantage before demand increases again.