Four years ago, the Toronto real estate market was moving at an intense pace. Homes were receiving multiple offers within days, bidding wars were common, and buyers often found themselves competing week after week without success.
Today, the market looks very different.
The February 2026 numbers show a market that has cooled significantly compared to the peak in early 2022. Sales are down, prices have declined, and inventory is much higher than it was during the height of the market. At the same time, many sellers appear to be waiting on the sidelines, which has created a slower and more cautious environment overall.
Across the Greater Toronto Area, there are currently about five months of inventory. In simple terms, this means that roughly one in five homes listed for sale is selling. Active listings are around 19,300, while sales in February were just under 3,900, both lower than last year. The average price is also down about 7% year-over-year.
The City of Toronto is showing a similar trend. February recorded 1,491 sales, making it the slowest February in four years. The average home price sits at approximately $1.008 million, slightly higher than January but still lower than the same time last year.
To understand how much the market has changed, it helps to compare today’s numbers with the peak in 2022. At that time, the GTA had about 6,900 active listings and roughly 9,000 sales in February alone. Homes were selling in an average of nine days, and properties often sold about 16% above the asking price.
Today, the environment is far more balanced. Inventory has nearly tripled since the peak, and the average time on market is now closer to 45 days.
Prices have also adjusted across property types. In the GTA, the benchmark price for a detached home has dropped from roughly $1.68 million in 2022 to about $1.23 million in 2026. Semi-detached homes have declined from about $1.25 million to around $930,000, while condos have moved from roughly $730,000 to about $540,000.
The condo market in downtown Toronto has shown some modest improvement recently. Sales have increased slightly compared to the second half of 2025, and inventory levels are lower than they were mid-last year. However, buyers remain selective. Condos with strong layouts, good locations, and parking tend to perform the best, while others can sit on the market longer.
Despite the overall slowdown, competition still exists in certain segments. Entry-level homes and semi-detached properties in desirable neighbourhoods - often in the $1 million to $1.5 million range—continue to attract multiple offers when priced correctly.
For sellers, the current market requires careful preparation. Properties that show well, are marketed properly, and are priced appropriately for 2026 are still attracting solid interest. When one of those elements is missing, listings tend to stay on the market longer.
As Toronto approaches the spring market, more listings are beginning to appear. This will likely give buyers more options in the coming months, while sellers may look to list earlier to stay ahead of the increased supply.
Four years after the peak, the Toronto real estate market has shifted from a fast-moving, highly competitive environment to one that is more balanced and selective. Buyers have more choice, sellers need stronger strategy, and the market is continuing to adjust as it moves through 2026.
Today, the market looks very different.
The February 2026 numbers show a market that has cooled significantly compared to the peak in early 2022. Sales are down, prices have declined, and inventory is much higher than it was during the height of the market. At the same time, many sellers appear to be waiting on the sidelines, which has created a slower and more cautious environment overall.
Across the Greater Toronto Area, there are currently about five months of inventory. In simple terms, this means that roughly one in five homes listed for sale is selling. Active listings are around 19,300, while sales in February were just under 3,900, both lower than last year. The average price is also down about 7% year-over-year.
The City of Toronto is showing a similar trend. February recorded 1,491 sales, making it the slowest February in four years. The average home price sits at approximately $1.008 million, slightly higher than January but still lower than the same time last year.
To understand how much the market has changed, it helps to compare today’s numbers with the peak in 2022. At that time, the GTA had about 6,900 active listings and roughly 9,000 sales in February alone. Homes were selling in an average of nine days, and properties often sold about 16% above the asking price.
Today, the environment is far more balanced. Inventory has nearly tripled since the peak, and the average time on market is now closer to 45 days.
Prices have also adjusted across property types. In the GTA, the benchmark price for a detached home has dropped from roughly $1.68 million in 2022 to about $1.23 million in 2026. Semi-detached homes have declined from about $1.25 million to around $930,000, while condos have moved from roughly $730,000 to about $540,000.
The condo market in downtown Toronto has shown some modest improvement recently. Sales have increased slightly compared to the second half of 2025, and inventory levels are lower than they were mid-last year. However, buyers remain selective. Condos with strong layouts, good locations, and parking tend to perform the best, while others can sit on the market longer.
Despite the overall slowdown, competition still exists in certain segments. Entry-level homes and semi-detached properties in desirable neighbourhoods - often in the $1 million to $1.5 million range—continue to attract multiple offers when priced correctly.
For sellers, the current market requires careful preparation. Properties that show well, are marketed properly, and are priced appropriately for 2026 are still attracting solid interest. When one of those elements is missing, listings tend to stay on the market longer.
As Toronto approaches the spring market, more listings are beginning to appear. This will likely give buyers more options in the coming months, while sellers may look to list earlier to stay ahead of the increased supply.
Four years after the peak, the Toronto real estate market has shifted from a fast-moving, highly competitive environment to one that is more balanced and selective. Buyers have more choice, sellers need stronger strategy, and the market is continuing to adjust as it moves through 2026.
