Toronto Real Estate Market Report – March 2025
The Greater Toronto Area (GTA) real estate market remains in a transitional phase, shaped by economic uncertainties, shifting trade policies, and recent weather disruptions. February 2025 saw significant changes in both sales activity and pricing trends, with evolving conditions that could impact buyers, sellers, and investors in the coming months.
Sales Activity & Market Trends
The Toronto Regional Real Estate Board (TRREB) reported 4,037 home sales in February 2025, reflecting a 27.4% year-over-year decline from February 2024. The MLS® Home Price Index (HPI) Composite benchmark also dropped 1.8% year-over-year, while the average selling price declined 2.2% to $1,084,547.
New listings increased to 12,066, a 5.4% rise from the previous year. Despite more inventory, sales activity remained subdued, with a month-over-month decline compared to January 2025. This indicates ongoing buyer hesitation, likely influenced by broader economic concerns.
Economic Factors Influencing the Market
Trade uncertainties between Canada and the U.S. have created a cautious market environment. The imposition and removal of tariffs have affected various industries, including real estate. Additionally, February’s heavy snowfall disrupted transactions, causing both buyers and sellers to delay market activity.
However, with potential interest rate cuts on the horizon, market conditions could shift in favor of buyers and sellers looking for stability. Some neighborhoods have already begun seeing multiple offers on select properties, signaling an early resurgence.
Rental Market Insights
The GTA rental market has seen increasing supply, particularly in investor-owned condominiums. While average condo rents dropped 6.5% year-over-year to $2,219, and houses/townhomes saw an 8.9% decline to $2,144, February marked a stabilization in rental rates. This trend may pressure smaller investors, potentially leading to more resale listings.
Looking Ahead
As spring approaches, the GTA market is poised for potential recovery. Factors such as easing trade tensions, expected interest rate reductions, and increased housing inventory could bring renewed activity. Buyers and sellers should stay informed, as the latter half of 2025 may see an increase in transactions and competition in key areas.
For those considering entering the market, now is the time to assess opportunities. Whether buying, selling, or investing, staying ahead of market trends will be crucial for making informed decisions.
Stay tuned for next month’s update as we track the GTA real estate market’s evolution.
