TORONTO – Home sales in the Greater Toronto Area (GTA) experienced a significant decline in February 2025, with transactions falling by over 25% compared to the same month the previous year. According to the Toronto Regional Real Estate Board (TRREB), a total of 4,037 homes were sold in February, marking a 27.4% decrease from 5,562 sales recorded in February 2024. Additionally, there was a 28.5% drop in sales from January 2025 on a seasonally adjusted basis.
Amid the declining sales figures, the average selling price of homes in the GTA also underwent a slight decline. The average price for homes sold in February 2025 decreased by 2.2% compared to the previous year, settling at $1,084,547. The composite benchmark price, which is seen as a representation of typical homes in the market, fell by 1.8% year-over-year, indicating a trend of reduced home values.
In contrast to the falling sales and prices, the number of new listings in the GTA saw an increase. In February 2025, there were 12,066 properties newly listed in the region, reflecting a 5.4% rise from the previous year. This surge in listings contributed to a substantial increase in total inventory, which rose by 76% to reach 19,536 properties available in the market.
TRREB analysts suggest that prospective buyers are maintaining "substantial" negotiating power in the current real estate climate, providing them with opportunities to secure favorable deals. However, many buyers remain cautious due to elevated borrowing costs, as concerns linger about the affordability of monthly payments for typical properties. The board anticipates that a projected decline in borrowing costs in the coming months may enhance affordability, potentially encouraging more buyers to enter the market.
Moreover, TRREB's chief market analyst, Jason Mercer, highlighted that broader macroeconomic factors, particularly the strained trade relationship between Canada and the United States, could be contributing to the prevalent hesitancy among would-be buyers. This uncertainty has led many potential purchasers to adopt a "wait-and-see" mentality regarding home buying in the current environment.
As the real estate market evolves, stakeholders are keeping a close watch on trends and potential shifts. The fluctuations in home sales and pricing dynamics, alongside changes in financing conditions, will play a crucial role in shaping future buyer behavior and market conditions in the Greater Toronto Area.
