Greater Toronto Housing Market Extends Decline with 7% Price Drop in February
Toronto area home prices continued to slip in February, marking a year of monthly year-over-year declines, according to the Toronto Regional Real Estate Board’s (TRREB)‘s latest report released Thursday.
The report, which analyzes all sales for the month, showed the average price of a home across the region was $1.009 million, down about seven per cent from last February.
TRREB has reported year-over-year declines in the average selling price since February 2025, said chief information officer Jason Mercer.
“We’ve been seeing prices trend lower,” he said, adding that one factor is the ongoing trade uncertainty with the U.S.
“But if we see market conditions tighten up and we get a bit of a floor,” he added, “then that could be another factor that sees people move into the marketplace.”
“Because they’re more confident that prices are going to hold and potentially start trending upwards.”
Average prices were down from February 2025 for all home types, including detached homes (8.2 per cent), semis (5.8 per cent), townhouses (7.2 per cent) and condos (8.8 per cent).
The average price of a detached home in the city of Toronto now sits at $1.57 million, down about 11 per cent from last year (although small numbers of monthly sales can skew these averages).
During the real estate peak in February 2022, the average price for a detached house in the 416 was over $2 million.
Meanwhile, condos in the 905 were the cheapest product available, at an average price of $549,563 in February 2026, down 10 per cent from last year.
Average prices increased slightly from last month, but it’s typically a very slow period for the real estate market.
It was the first increase in average monthly price since September 2025.
Toronto area average home prices dropped below $1 million or the first time since 2021, in January, according to the board.
Prices have declined across the region by about 24 per cent since the peak of the market in February 2022.
Sales were also down about six per cent from last February to 3,868. New listings were down by almost 18 per cent to 10,705.
“What we’ve seen over the last year is prices have been trending lower, and that’s just because buyers have had a lot of choice throughout the GTA,” said Mercer.
“If we start to see listings declining at a greater rate than sales, or listings declining and sales starting to grow, then that leads to tighter market conditions, more competition and ultimately price growth.”
Mercer said TRREB anticipates sales will turn around in the second half of the year if things stabilize “on the trade front.”
He added that there’s also currently a lot of choice for tenants in the rental market, which makes it easier for first-time buyers to wait to make a purchase.
TRREB President Daniel Steinfeld said in the report that if new listings continue to trend lower, “competition between homebuyers will increase, supporting home prices and a recovery in sales.”
This article was first reported by The Star
