Declining Listings and Prices in Toronto and Vancouver Real Estate Markets

The real estate markets in Toronto and Vancouver are experiencing significant declines in new listings and sales, as homeowners adopt a cautious approach amid falling prices. The Toronto Regional Real Estate Board (TRREB) reported a 17.7% decrease in new listings in February 2026 compared to the previous year, while Greater Vancouver Realtors noted a 6.4% decline. In Toronto, sales fell by 6.3% to 3,868 transactions, marking the first instance since September where new listings decreased at a faster rate than sales. Conversely, Vancouver saw a more pronounced drop in sales, with a 9.8% decline to 1,648 transactions.

The Globe and Mail (Toronto)Toronto home sold at nearly $500,000 loss compared to its 2022 price

Home prices in both cities continue to decline, with the Metro Vancouver home price index dropping to $1.1 million, a 6.8% decrease from February 2025. In Toronto, the average selling price fell to $1 million, reflecting a 7.1% year-over-year decrease. Analysts attribute the reduced activity to homeowners' reluctance to sell in a declining market, with many waiting for conditions to improve. Jason Mercer, TRREB's chief information officer, noted that sellers are uncertain about the timing of their sales, echoing the "wait-and-see" mentality that has characterized buyers for the past year.

The Globe and Mail (Toronto)Toronto home sold at nearly $500,000 loss compared to its 2022 price

The dynamics among sellers are divided. Some homeowners are motivated to sell to upgrade their living situations, despite potential financial losses. In contrast, many investors are hesitant to sell, hoping for a market rebound. Tom Storey, a Royal LePage sales representative, indicated that condo owners are particularly affected, with a 12% year-over-year drop in condo transactions in February. He cautioned that the market may take years to recover, as current conditions do not suggest a bottoming out.

The Globe and Mail (Toronto)

External factors, including inflation and geopolitical tensions, are contributing to the uncertainty in the Canadian real estate market. Concerns about the economy and trade relations with the U.S. have dampened buyer enthusiasm, even as interest rates remain low. The ongoing conflict in the Middle East has further complicated the landscape, potentially leading to increased bond yields and slight rises in fixed-rate mortgages. Mercer emphasized that current events significantly influence consumer decision-making.

The Globe and Mail (Toronto)

Critics of the current market conditions highlight the challenges faced by homeowners and investors alike. The steep declines in property values, exemplified by a Toronto home selling for nearly $500,000 less than its 2022 price, underscore the difficulties in the Greater Toronto Area (GTA) housing market. Similar cases of significant losses have been reported across various properties, raising concerns about the long-term viability of the market.

Toronto home sold at nearly $500,000 loss compared to its 2022 price

As Toronto and Vancouver navigate a challenging real estate landscape characterized by declining listings and prices, both buyers and sellers remain cautious. The interplay of economic factors and market sentiment will likely continue to shape the trajectory of these markets in the coming months.

The Globe and Mail (Toronto)