Toronto Real Estate Market Trends (2026)

Toronto's real estate market entered 2026 in buyer-friendly territory. The Greater Toronto Area housing market demonstrated early stabilization signs in February 2026, though conditions remain firmly in buyer's territory. The benchmark home price stood at $938,800, representing a 7.9% year-over-year decline while showing modest 0.3% monthly growth. The median selling price reached $865,000, indicating 50% of homes sold above and below this figure.

Current Market Snapshot

Total sales reached 3,868 units with an average price of $1,008,968, representing a 7% year-over-year decline. However, new listings dropped 11% year-over-year to 10,705, indicating tightening supply despite price pressures. The sales-to-new-listings ratio improved to 36.1% from January's 28.6%, though it remains below the 40% threshold indicating balanced conditions. The GTA maintains 5.0 months of inventory, classifying it as a buyer's market. When supply exceeds 5 months, buyers gain negotiating leverage. Active listings rose 7.4% month-over-month to 19,314 units, essentially matching year-ago levels.

Sold Activity

Transaction volume totaled 3,868 sales in February - a 25.5% monthly increase but 4.2% below year-ago levels. TRREB estimates over 100,000 potential buyers are holding off, waiting for prices to stabilize. If new listings continue trending lower through spring, competition between buyers will increase, supporting prices.

416 vs 905 Divergence

The data reveals significant differences between core Toronto (416) and surrounding regions (905). Within the broader GTA, Toronto proper showed stronger momentum - average price reached $1,019,144 (up 7.4% monthly, down 6.2% annually), with 1,491 transactions (up 38.8% monthly) and active listings at 7,397 (down 5.3% annually). The 416 semi-detached market shows particular strength, with a 55% sales-to-new-listings ratio and a 12% year-over-year improvement. Semi-detached properties are one of the most common starting points for duplex and triplex conversions in Toronto, making this segment especially relevant for investors. Meanwhile, the 905 condo market remains weakest, with only 28% SNLR and 10% year-over-year price declines.

Price Distribution

Property Type Breakdown

The correction has hit property types unevenly: Detached homes average $1,325,654, down 8.3% annually, with 1,683 transactions. Average 416 prices sit at $1,568,543 (down 12% year-over-year) with 40% SNLR, maintaining healthy demand. Despite the headline decline, established neighbourhoods in midtown and the west side are showing early stabilization, with some pockets of positive month-over-month movement. Semi-detached homes average $1,027,376, down 4.9% annually, with 336 transactions. This is the strongest segment with 55% SNLR in the 416 and improving absorption rates. Despite broader market uncertainty, demand for low-rise housing in core Toronto remained resilient, suggesting buyers focused on properties with long-term income potential and conversion possibilities. Freehold townhouses average $930,779, down 6.1%, with 369 transactions. Townhouses in established areas like Leslieville, The Junction, and Riverdale continue to see solid interest from young families. Condo apartments average $626,650, down 8.9% annually - the steepest decline of any segment, with 1,088 transactions down 11.2% year-over-year. Investors who drove much of the pandemic-era condo boom have largely stepped back, and that demand has yet to return in any meaningful way. The condo market faces a triple challenge: record new construction completions adding supply, investors listing units as rental yields tighten, and first-time buyers waiting on the sidelines expecting further price drops. Notable exception: Condo townhomes averaged $748,500 and represented the only property type posting year-over-year sales growth, with 329 transactions up 11.1% annually.

Pricing Dynamics

Homes are selling at an average sale-to-listing price ratio of 97% - meaning homes sell roughly 3% below asking. Average days on market have stretched to 54 days, compared to 43 days a year ago. Price declines persist across all major property types.

Neighbourhood Breakdown

Toronto's market spans an enormous price range across its 158 officially recognized neighbourhoods. For detailed neighbourhood analysis, see our best neighbourhoods guide.

Affordability and Outlook

Incomes simply have not kept up with home prices in Toronto, even following Bank of Canada rate cuts throughout 2024-2025. The average home price of roughly $1 million requires a household income of approximately $180,000 to qualify - well above the city median of $84,000. The market showed seasonal improvement typical of February, but underlying headwinds persist. The cooling labour market, combined with persistent affordability challenges, continues to constrain buyer demand. For sellers, strategic pricing remains essential given extended market times and discounted sale prices relative to asking values. Current conditions represent a transition period - early stabilization without confirmation of a fundamental market reversal. For multiplex investors, three signals warrant attention: declining listings year-over-year, strengthening absorption in low-rise segments, and potential capital reallocation away from underperforming condo markets toward cash-flowing rental properties. Browse all Toronto listings or read the Toronto city guide.