February 2026 Market Overview
As we move into February 2026, Toronto's real estate market is showing signs of renewed activity following the typical January slowdown. The combination of stabilizing interest rates and pent-up demand from cautious 2025 buyers is creating interesting opportunities for both buyers and sellers.
Key Market Statistics
Sales Activity
- Home Sales: Up 12% compared to February 2025
- New Listings: Increased 8% month-over-month
- Average Days on Market: 24 days (down from 28 in January)
- Sales-to-New-Listings Ratio: 52% (balanced market territory)
Price Trends by Property Type
| Property Type | Average Price | YoY Change |
|---|---|---|
| Detached | $1,485,000 | +3.2% |
| Semi-Detached | $1,125,000 | +2.8% |
| Townhouse | $895,000 | +2.1% |
| Condo | $715,000 | +1.4% |
Interest Rate Environment
The Bank of Canada has held steady after modest rate cuts in late 2025. Current conditions:
- Bank of Canada Rate: 3.75%
- 5-Year Fixed Mortgage: 4.39% - 4.89%
- 5-Year Variable: 4.65% - 5.15%
Most economists predict stable rates through Q1 2026, giving buyers confidence to enter the market without fear of immediate rate increases.
What's Driving the Market
Demand Factors
- Population Growth: Immigration targets remain high at 500,000+ for 2026
- Employment: Toronto's tech and finance sectors continue hiring
- Millennial Buyers: Peak earning years driving first-time purchases
- Investment Activity: Return of investors seeking rental yield
Supply Considerations
- New Construction: Condo completions increasing, detached remains constrained
- Resale Inventory: Gradually improving but still below historical norms
- Move-Up Sellers: More confident to list knowing they can buy
Neighbourhood Highlights
Hot Markets This Month
- Leslieville: Strong family demand, multiple offers returning
- North York (Yonge Corridor): Condo sales picking up near subway
- Scarborough: Best value for detached homes, investor interest rising
- The Junction: Continued gentrification driving prices
Watch List
- Downtown Condos: Inventory elevated, buyer opportunity
- York Mills: Luxury segment showing renewed activity
- Etobicoke Waterfront: Long Branch and Mimico gaining momentum
Advice for February Buyers
This month presents solid opportunities for prepared buyers:
- Get Pre-Approved: Lock in current rates before potential spring changes
- Move Quickly: Well-priced homes are selling fast again
- Don't Overbid: Market is active but not frenzied—stay disciplined
- Consider Timing: March listing surge means more selection coming
- Inspect Thoroughly: Winter conditions can reveal heating/insulation issues
Advice for February Sellers
Listing now can beat the spring competition:
- Price Strategically: Serious buyers are active; price fairly for quick sale
- Stage for Winter: Warm, well-lit interiors showcase better
- Professional Photos: Shorter days require optimal lighting
- Be Flexible: Weekend and evening showings accommodate buyer schedules
- Prepare for Spring: If not ready now, list early March for best exposure
Condo Market Spotlight
The condo segment deserves special attention this month:
- Downtown inventory up 15% vs. last year
- Average price per square foot: $1,050
- Best value in newer buildings (5-10 years old)
- Rental demand supporting investor purchases
For buyers seeking entry-level ownership or investment opportunities, the condo market offers the most negotiating room currently available.
Looking Ahead to Spring 2026
Our forecast for March-May 2026:
- Listing activity to increase 20-25% vs. winter
- Buyer competition to intensify, especially for family homes
- Prices likely to see modest seasonal lift (2-4%)
- Multiple offer situations to increase in desirable areas
Buyers who act in February may find less competition than those waiting for spring. Sellers considering listing should prepare now to hit the market in early March for optimal exposure.
Get Your Personalized Market Analysis
Every neighbourhood and property type behaves differently. Whether you're considering buying or selling in Toronto's February market, contact us for a detailed analysis specific to your situation. Our deep knowledge of local market conditions helps clients make informed decisions.
Call David Rad at (416) 315-9938 or reach out through our contact form for a confidential consultation.
