The GTA housing market slowed in February, with fewer home sales, fewer new listings, and declining prices compared to the same time last year. According to the Toronto Regional Real Estate Board (TRREB), many potential buyers appear to be holding off, waiting to see if prices will drop further before entering the market.
Home Sales & Prices
A total of 3,868 homes were sold across the GTA in February, representing a 6.3% decline compared to February 2025. Sales were also slightly lower on a month-to-month basis, falling 1% from January after seasonal adjustments. This slowdown reflects cautious buyer behaviour as many people take a wait-and-see approach to the market.The average selling price across the GTA dropped to $1,008,968, which is 7.1% lower than February of last year. While prices remain high historically, this shift signals a softer market compared to the strong demand seen in previous years.
New Listings
The number of homes coming onto the market also declined. There were 10,705 new listings in February, a 17.7% decrease compared to the same month in 2025. Lower listing activity can limit options for buyers, but it can also influence market conditions moving forward.TRREB President Daniel Steinfeld noted that if the number of new listings continues to decline through the spring market, competition among buyers could increase. In that scenario, reduced supply could put upward pressure on prices and potentially lead to stronger sales activity.
Opportunity for Buyers
Despite the slowdown, there are signs of opportunity for buyers. In some cases, condos in Toronto are appearing on the market for under $400K, something that has been rare in recent years.For buyers who have been waiting for a shift in the market, current conditions may offer more negotiating power and potential value than during the highly competitive markets of the past.
Looking Forward
The GTA real estate market is currently in a period of adjustment. Sales activity has cooled, prices have softened, and new listings have declined. However, if inventory continues to tighten while demand remains strong, the market could shift again quickly.For both buyers and sellers, the coming spring months will likely play a key role in determining the direction of the market for the rest of the year.