Welcome to this month’s Market Stat blog!

After a chilly start to 2026, the Toronto real estate market is showing signs of momentum. While January brought cautious activity, February tells a story of buyers stepping in with confidence and taking advantage of new opportunities. For first time buyers and awaiting buyers, the market is presenting some exciting possibilities.

Current Market Conditions

According to the latest Greater Toronto Area real estate data, 3,082 homes were sold in January 2026, followed by 3,868 in February. This increase in sales indicates a shift toward renewed buyer confidence.

The average home price rose slightly from $973,289 in January to $1,008,968 in February, which is still 7.1% lower than February 2025.

The MLS HPI Composite benchmark was down 7.9% from this time last year, showing that the market is still in a period of adjustment, but moving toward stability and balance.

Link below for previous Toronto Housing Market Reports

• Toronto Housing Market Report – January 2026
• Toronto Housing Market Report – December 2025
• Toronto Housing Market Report – November 2025

Demand and Interest Rates

Buyer demand in February is showing encouraging signs. With more active listings and faster sales (average days on market dropping from 67 to 54), buyers are no longer just waiting on the sidelines, they’re making confident moves.

Interest rates remain a key factor influencing buyer behavior. While rates have moderated compared to the peaks of previous years, affordability is improving, giving buyers the power to negotiate and plan strategically. Many are taking advantage of this window to secure homes with favorable financing before any future rate changes.

Important: Next Rate Announcement scheduled for March 18, 2026.

Supply of Homes

The supply of homes in the GTA is increasing, giving buyers more options and creating a healthier, more balanced market. Active listings rose from 17,975 in January to 19,314 in February, providing a wider selection for buyers and reducing competition for each property.

This environment encourages sellers to be strategic: homes need to be priced correctly and presented well to attract buyers. It’s no longer enough to rely on demand alone. Thoughtful listings and realistic expectations are the key to success, which benefits buyers who now have more negotiating power.

Have any Questions: Ask us how to maximize your home’s value and showcase it to stand out in today’s market!

Market Outlook

Buyers are returning, inventory is rising, and prices are stabilizing after a period of correction. While sellers need to remain strategic, this environment provides a rare opportunity for buyers to negotiate and secure properties under favorable conditions.

With new rate announcements expected soon, we anticipate getting even more clarity on market trends for 2026.

Key Takeaways

• Home sales: January 3,082 → February 3,868
• Active listings: January 17,975 → February 19,314
• Average home price: January $973,289 → February $1,008,968 YoY)
• MLS HPI Composite: -7.9% YoY in February 2026
• Days on market: January 67 → February 54