Market Insight for March 7

Homebuyers continued to benefit from substantial choice in the Greater Toronto Area (GTA) resale market in February 2025. Home sales last month were down compared to the same period last year, while listing inventory remained high, providing substantial negotiating power for homebuyers.

“Many households in the GTA are eager to purchase a home, but current mortgage rates make it difficult for the average household to comfortably afford monthly payments on a typical property.

Fortunately, we anticipate a decline in borrowing costs in the coming month, ( March 12ᵗʰ is the next interest rate announcement) which should improve affordability,” said TRREB President Elechia Barry-Sproule.

“On top of lingering affordability concerns, homebuyers have arguably become less confident in the economy.

Uncertainty about our trade relationship with the United States has likely prompted some households to take a wait-and-see attitude towards buying a home. If trade uncertainty is alleviated and borrowing costs continue to trend lower, we could see much stronger home sales activity in the second half of this year,” said TRREB Chief Market Analyst Jason Mercer.

GTA REALTORS® reported 4,037 home sales through TRREB’s MLS® System in February 2025 – down by 27.4 per cent compared to February 2024. New listings in the MLS® System amounted to 12,066 – up by 5.4 per cent year-over-year. On a seasonally adjusted basis, February sales were down month over month compared to January 2025.

The average selling price, at $1,084,547, was down by 2.2 per cent compared to February 2024, but up 4.2% month-over-month.

Going forward, GTA homebuyers and sellers will face uncharted waters as politicians and governments navigate a number of political and economic headwinds in the coming months. Clarity from lawmakers, TRREB Chief Executive Officer John DiMichele says, will be imperative in bringing buyers off the sidelines.