Buyers still hold room with days on market at 42, up from 39 last year. With the BoC steady at 2.25% and pent-up demand on the sidelines, firming sales against shrinking supply could nudge prices higher into summer.
Semi-detached and detached held up best, down 2.9% and 4.7% YoY, supported by scarce supply and steady end-user demand. Condos and townhouses lagged at 6.4% and 7.1% below, with the condo market's heavy supply a likely drag. MoM, semis led at +3.3%
Buyers still hold negotiating power with average days on market at 43, up from 37 last year. If easing borrowing costs and improving confidence keep drawing buyers in, tighter supply could start putting upward pressure on prices as the season progresses.
Detached and condo apartment sales led the rebound, up 9.2% and 9.1% year-over-year. Prices fell across all types, with townhouses seeing the sharpest drop at 7.9% below last year and detached the most resilient at 4.1% below.
Toronto’s market continues to be influenced by borrowing costs, confidence and supply. Rates remain supportive, but geopolitical uncertainty may keep buyers cautious. If supply tightens as demand improves, expect prices to rise.
Across home types, prices remained below last year’s levels, with semis and condos showing the larger annual declines. Month over month, values were more stable, with detached homes and towns holding a slight edge.
As spring activity builds, expect well-priced, desirable, low-friction homes to keep selling. If buyer confidence improves and competition heats up, it may show up first in townhomes and semis, where many budget-sensitive buyers can still upgrade.
February’s pickup showed more homes sold across all property types. Semis had the largest month-over-month price jump. They may be worth watching as a possible “upgrade compromise” with more space and privacy than a condo or townhome without the full detached price.
Conditions remain buyer-leaning, with more active listings and fewer sales than a year ago. As spring supply typically builds into March, watch whether demand keeps pace as buyers look to the Bank of Canada for clearer direction on borrowing costs.
Detached prices held up best, likely reflecting a higher-income, less payment-sensitive buyer pool with fewer true substitutes in the low-rise market. Even so, year-over-year price declines have improved relative value and helped support demand where buyers are ready to act.
Buyers continued to hold leverage from high inventory. Sellers adjusted with more realistic prices. Confidence remains fragile amid economic uncertainty, with interest rates and employment stability expected to be key drivers as the market heads toward the spring selling season.
Townhomes were the only segment to post MoM price growth, possibly from first-time and move-up buyers seeking better value than detached with more space than condos. Detached showed greater resilience, while condos continued to face price pressure from weaker investor demand.
With high supply and softer demand, prices remained flexible. But if job growth and GDP momentum hold and borrowing costs stay steady, we could see sidelined buyers re-enter, boosting activity and supporting a more balanced market in 2026.
Semi-detached homes were the most resilient, with sales volume down just 5.5% year-over-year, while condo apartments showed the most weakness at –21.7%. This suggests buyers continued to favour larger low-rise options and were securing better value in a well-supplied market.