After a softer start to the year, tightening market conditions could set the stage for a rebound in Greater Toronto Area home sales later in 2026, according to the Toronto Regional Real Estate Board.
New data from TRREB shows that while resale transactions declined year-over-year in February, new listings fell at a much sharper pace — a dynamic that could increase competition if demand begins to reassert itself.
GTA REALTORS® reported 3,868 home sales through TRREB’s MLS® System in February 2026, down 6.3% compared to the same month last year. Over the same period, new listings dropped 17.7% year-over-year to 10,705.
On a seasonally adjusted basis, both sales and new listings were down month-over-month compared to January, with listings again declining at a faster rate than sales.
According to TRREB, the pullback in new listings aligns with recent Ipsos polling showing that listing intentions are lower for 2026, as many homeowners remain hesitant to enter the market.
“Many would-be homebuyers are waiting for selling prices to level off before moving into the market,” said Daniel Steinfeld, President of TRREB. “If new listings continue to trend lower through the spring, competition between homebuyers will increase, supporting home prices and a recovery in sales.”
Price metrics continued to trend lower in February. The MLS® Home Price Index Composite benchmark was down 7.9% year-over-year, while the average selling price declined 7.1% to $1,008,968. On a month-over-month seasonally adjusted basis, both measures were also down compared to January 2026.
Despite the near-term softness, TRREB points to significant pent-up demand that could drive momentum later in the year.
“There is substantial pent-up demand in the GTA ownership market, with more than 100,000 buyers holding off on making a home purchase,” said Jason Mercer, TRREB’s Chief Information Officer. “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.”
Looking longer term, TRREB continues to emphasize the importance of expanding housing options beyond the traditional condo–single-family divide.
“The long-term sustainability of the GTA housing market depends upon the industry’s ability to bridge the gap between condominium apartments and traditional single-family homes,” said John DiMichele, Chief Executive Officer of TRREB.
DiMichele added that TRREB and its partners in the Housing Advancement Coalition are urging federal and provincial governments to take targeted action to support increased “missing middle” home construction.
