Toronto Housing: Prices Hold, Sales Slump

The Greater Toronto housing market continued to show signs of weakness in February, with only limited indications of recovery. Home prices posted a slight month-over-month increase, but they remain notably lower than both last year’s levels and the peak reached during the market surge earlier in the decade. In fact, current prices are roughly comparable to those seen about four years ago. While the modest price increase may suggest some stabilization, seasonally adjusted figures indicate that underlying market momentum remains soft and has yet to establish a clear upward trend.

Sales activity remains one of the market’s biggest challenges. The number of homes sold in February declined compared with the same period last year and remains far below the record levels seen during the housing boom. Although winter months are typically slower for real estate transactions, this February ranks among the weakest in many years. At the same time, demand has not been strong enough to absorb the available supply, highlighting the cautious stance many buyers continue to take.

Inventory conditions further illustrate the current imbalance. While new listings decreased compared with the previous year, the total number of active listings on the market remains relatively high, meaning many properties are taking longer to sell. Market balance indicators still point to conditions that favor buyers, as demand remains insufficient to significantly reduce available supply. Overall, the February data suggests that the Toronto housing market remains in a period of slow activity, and a stronger recovery will likely depend on improved affordability and a rebound in buyer confidence.