According to the Toronto Regional Real Estate Board (TRREB), home sales are expected to rise significantly in the second half of 2026, as pent-up buyer demand begins returning to the market.
For many Toronto homebuyers, investors, and mortgage borrowers, this could represent the window of opportunity before competition intensifies again.
At Lendworth, we’re already seeing increased inquiries from borrowers looking to secure financing before market momentum returns.
GTA Housing Market Tightened in February 2026
Recent data from TRREB shows that GTA housing market conditions tightened in February 2026 compared to February 2025.
While overall sales were slightly lower year-over-year, the number of new listings dropped even faster, creating the early stages of a supply squeeze.
Key GTA Housing Market Stats (February 2026)
Home sales: 3,868 properties
Year-over-year change: down 6.3%
New listings: 10,705
New listings change: down 17.7% year-over-year
Average home price: $1,008,968
Price change: down 7.1% compared to February 2025
MLS Benchmark Index: down 7.9%
While those numbers may appear soft on the surface, the decline in listings is actually setting the stage for stronger prices and sales activity later in the year.
Over 100,000 GTA Buyers Waiting on the Sidelines
One of the biggest factors shaping the Toronto real estate market in 2026 is pent-up demand.
According to TRREB, more than 100,000 potential buyers are currently delaying their home purchases.
Many are waiting for two things:
Home prices to stabilize
Positive economic news and trade conditions
Once those signals appear, the market could shift quickly.
TRREB Chief Information Officer Jason Mercer explained that when these conditions improve, sales momentum could accelerate rapidly through the second half of 2026 and into 2027.
Why Home Sales Could Surge Later in 2026
Several economic and housing factors are aligning that could trigger increased home sales in Toronto and across the GTA.
1. Pent-Up Demand From Delayed Buyers
Thousands of buyers paused their plans during the recent market slowdown. Once confidence returns, many will re-enter the market simultaneously.
2. Lower Inventory
With new listings down nearly 18%, supply could tighten significantly if demand returns quickly.
3. Stabilizing Interest Rates
Mortgage rate expectations have improved compared to previous years, making borrowing more predictable for buyers.
4. Improving Buyer Psychology
Real estate markets are heavily influenced by confidence and sentiment. Once buyers believe prices have bottomed, activity typically accelerates.
Toronto’s “Missing Middle” Housing Challenge
Despite expectations for a recovery, Toronto still faces a long-term housing supply challenge.
TRREB CEO John DiMichele highlighted the growing need for “missing middle” housing, which includes:
Townhomes
Multiplex properties
Low-rise multi-unit buildings
Smaller family homes
These housing types help bridge the gap between condos and detached houses, improving affordability and increasing supply in urban areas.
Without increased construction of these property types, Toronto housing affordability will remain a major challenge.
What This Means for Buyers and Investors
If TRREB’s outlook proves correct, the first half of 2026 could represent a strategic buying window.
Once sales activity accelerates later in the year, competition between buyers could return quickly.
Potential opportunities right now include:
Negotiating better prices
More flexible closing terms
Less bidding competition
Access to properties before demand spikes
For investors, this period can also present opportunities to acquire properties before the next real estate cycle strengthens.
Financing Opportunities While the Market Is Quiet
Many buyers assume financing options are limited during uncertain markets, but the opposite is often true.
Private mortgage lenders can provide solutions when traditional banks move too slowly or decline applications.
At Lendworth, we help Ontario homeowners and buyers access flexible mortgage solutions including:
Approvals are often based primarily on property equity rather than income or credit scores, allowing borrowers to move quickly when opportunities arise.
The Bottom Line: A Market Turning Point May Be Coming
The GTA housing market may be closer to recovery than many people think.
With over 100,000 buyers waiting on the sidelines, a drop in listings, and stabilizing market conditions, home sales in Toronto could surge in the second half of 2026.
For buyers, investors, and homeowners considering refinancing, the current window may offer strategic opportunities before competition returns.
Speak With a Mortgage Expert at Lendworth
If you are planning to buy, refinance, or access equity from your property, our team can help you explore your options quickly.
Lendworth Financial
Private Mortgage Specialists – Ontario
Your Equity Deserves More™