Why Your Home Equity Still Puts You Ahead (Even in Today’s Market)
Monday, February 16, 2026
Even with recent market shifts, most homeowners are still far ahead of where they were just a few years ago.
If you’re a homeowner and you’ve seen headlines about home prices dropping, it’s easy to wonder what that means for the value of your home. Here’s what you really need to know: even with recent price declines, data shows most homeowners are still way ahead - and that’s thanks to home equity.
The Relationship Between Home Prices and Equity
After the record-setting home price surge of 2020, 2021, and early 2022, a period of cooling was inevitable. Back then, the number of homes for sale hit record lows. With buyers competing fiercely over limited inventory, home values, and homeowner equity, climbed rapidly.
But prices couldn’t continue rising at that pace forever. The market needed to moderate, and that’s exactly what we’re seeing now.
As more homes have come on the market over the past year, price growth has slowed. As a result, equity gains have slowed too - but that doesn’t mean homeowners have lost ground.
Putting Today’s Market Into Perspective
As of February 2026, homeowners in the Greater Toronto Area (and that includes Durham Region) likely still hold significant equity despite recent market adjustments. While average home prices are down roughly 8% from the 2021 annual average, values remain elevated after years of strong appreciation.
We’re currently in a buyer’s market across much of the GTA, with a Sales-to-New-Listings Ratio (SNLR) of about 28.6% (anything below 40% indicates buyer’s market conditions). Durham Region is performing slightly better, with an SNLR of 35.2%, likely due to its relative affordability.
Experts widely agree that today’s conditions reflect a market rebalancing, not a crash. The gains made over the past five to ten years far outweigh recent declines.
In other words, this market correction hasn’t erased years of growth. Homeowners who’ve owned for several years are still significantly ahead - and that’s true in most markets.
If you decide to sell, that equity can help you downsize, move up, or reposition financially.
And if you’re worried about further price drops, it’s worth noting that large, national price declines remain extremely unlikely in the near term. The moderation we’re seeing is a sign of a healthier, more balanced market after years of unsustainable growth.
After several years of strong appreciation, most homeowners remain in an excellent position. That’s one of the biggest reasons people strive to own real estate - it’s a powerful way to build long-term financial security.
Bottom Line
Even with prices cooling in some markets, today’s homeowners are still sitting on near-record levels of equity.
If you’re curious how much equity you actually have, or how far ahead you really are, feel free to reach out. You might be surprised by what your home is worth today.
Thanks For Reading Today’s BLOG!
Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com
If you or anyone you know is considering making a move in the next little while, give me a call or pass on my number ... 905-683-7800 (Office) or 905-426-7484 (Direct).
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