Toronto real estate continues nosedive and nobody seems to want to buy anymore

Home sales and prices in the Greater Toronto Area have fallen off a cliff, and the trend continued in February with further declines.

The Toronto Regional Real Estate Boards (TRREB) released its Feb. 2026 figures on Thursday, painting a grim picture for anyone looking to sell their GTA home in the near-term.

Just 3,868 home sales were reported in February, marking a 6.3 per cent dip year-over-year from the 4,127 homes sold during the same period in 2025.

Listings tumbled even further last month, dropping to 10,705 homes put up for sale — a shocking 17.7 per cent nosedive measured year-over year.

TRREB

Despite the drop in new supply, there has not been a corresponding increase in demand, and home prices continue to slide.

TRREB reports that the average selling price dropped 7.1 per cent year-over-year in February to $1,008,968. Compared to the $1,086,586 average selling price registered the previous February, the average Toronto area home has lost a shocking $77,618 worth of market value in just the last year alone.

TRREB

Despite the rough picture, TRREB analysts seem very optimistic that the market will spring back to life in the second half of 2026.

TRREB President Daniel Steinfeld argues that conditions may improve as "Many would-be homebuyers are waiting for selling prices to level off before moving into the market."

"If new listings continue to trend lower through the spring, competition between homebuyers will increase, supporting home prices and a recovery in sales," says Steinfeld.

Jason Mercer, TRREB's Chief Information Officer, says that over 100,000 potential buyers are currently awaiting conditions to improve so they can purchase a home.

"Buyers are waiting for selling prices to level off and for positive news on the trade front. Once we see both, there could be substantial momentum driving home sales in the second half of this year and into 2027," says Mercer.