Written by Miguel Fernandez Morales | Published on March 14, 2025
Homebuyers in the Greater Toronto Area (GTA) continued to enjoy a wide selection of resale properties in February 2025. While home sales declined compared to the same period last year, listing inventory remained high, giving buyers significant negotiating leverage.
"Many GTA households are eager to enter the housing market, but elevated mortgage rates make it challenging for the average household income to comfortably cover monthly payments on a typical home. However, we expect borrowing costs to decline in the coming months, which should help improve affordability," said TRREB President Elechia Barry-Sproule.
"In addition to ongoing affordability challenges, homebuyers appear to be less confident in the economy. Concerns about our trade relationship with the United States may have led some households to adopt a wait-and-see approach to purchasing a home. If trade uncertainty eases and borrowing costs continue to fall, we could see much stronger home sales activity in the latter half of the year," said TRREB Chief Market Analyst Jason Mercer.
GTA REALTORS® recorded 4,037 home sales through TRREB's MLS® System in February 2025, marking a 27.4% decline compared to February 2024. Meanwhile, new listings reached 12,066, reflecting a 5.4% year-over-year increase.
The MLS® Home Price Index (HPI) Composite benchmark declined 1.8% year-over-year in February 2025, while the average selling price dropped 2.2% to $1,084,547 compared to the same period last year.
"With the Ontario provincial election just behind us and ongoing uncertainty at the federal level, housing policy remains a key consideration. Policymakers and political candidates must not only clarify their stance on housing supply and affordability but also outline their approach to broader economic and trade challenges," said TRREB CEO John DiMichele.
Contact me at 647-985-0348 or miguel@yourfamilyrealtor.ca