Homebuyers in the Greater Toronto Area (GTA) continued to enjoy a well-supplied resale market in February, with ample listings providing strong negotiating power. However, home sales declined compared to the same time last year, reflecting ongoing affordability challenges and economic uncertainty.

“Many GTA households are eager to buy, but high mortgage rates make it difficult for the average income to comfortably support homeownership. Fortunately, we anticipate lower borrowing costs in the coming months, which should help improve affordability,” said TRREB President Elechia Barry-Sproule.

Key Market Trends – February 2025:

✅ Sales Activity: GTA REALTORS® reported 4,037 home sales, down 27.4% from February 2024.
✅ New Listings: Increased 5.4% year-over-year, totaling 12,066 properties.
✅ Home Prices:

• The MLS® Home Price Index Composite benchmark declined 1.8% year-over-year.
• The average selling price fell 2.2% to $1,084,547 compared to February 2024.
• On a seasonally adjusted basis, prices edged lower from January 2025.

Factors Impacting the Market

• Economic Uncertainty: Concerns over trade relations with the U.S. may be causing some buyers to take a cautious, wait-and-see approach. However, if trade conditions stabilize and interest rates decline, home sales could see a boost in the second half of the year.
• Political Landscape: With Ontario’s recent provincial election and federal political shifts, clear housing policies will be crucial to boosting consumer confidence. “Policymakers must provide clear strategies on housing supply, affordability, and economic growth to support the real estate market,” said TRREB CEO John DiMichele.

As borrowing costs are expected to decline, a more active housing market may emerge later in the year. Buyers and sellers alike will be watching closely for economic and policy developments that could shape the GTA housing market in 2025.