Real Estate Market Report

February 2025 Market Report

Key Highlights

The Toronto Regional Real Estate Board (TRREB) has released its February 2025 market report, shedding light on the current state of the Greater Toronto Area (GTA) housing market. The data reveals a market in flux, with shifting dynamics in affordability, consumer confidence, and inventory levels. Here’s a breakdown of the key trends and insights from the report:

Sales and Prices by Property Type

The report breaks down sales and average prices by major home types, revealing varying trends across different segments of the market:

  • Detached Homes: Sales of detached homes fell by 31.1% year-over-year, with the average price dropping slightly by 0.2% to $1,445,879.
  • Semi-Detached Homes: Semi-detached home sales declined by 22.3%, with prices down 4.0% to an average of $1,079,996.
  • Townhouses: Townhouse sales dropped by 30.6%, and prices decreased by 2.3% to an average of $911,483.
  • Condo Apartments: Condo apartment sales fell by 22.0%, with prices down 1.3% to an average of $688,055.

Regional Insights

The report also provides a detailed look at sales and prices across different regions within the GTA:

  • City of Toronto: The average price in Toronto was $1,040,017, with sales down significantly compared to February 2024.
  • Halton Region: Burlington saw a 46.9% sales-to-new-listings ratio, with an average price of $1,037,758.
  • Peel Region: Mississauga recorded 333 sales, with an average price of $1,038,951.
  • York Region: Richmond Hill had an average price of $1,325,807, with sales down by 32.3% year-over-year.
  • Durham Region: Whitby saw 103 sales, with an average price of $967,842.

A Shift in Affordability and Consumer Confidence

  1. Decline in Home Sales
    Home sales in the GTA saw a significant drop in February 2025, with only 4,037 transactions recorded through the TRREB MLS® System. This represents a 27.4% decrease compared to February 2024, when 5,562 homes were sold. The decline in sales is attributed to a combination of high mortgage rates and economic uncertainty, which have caused many potential buyers to adopt a “wait-and-see” approach.
  2. Increased Inventory Levels
    While sales dipped, new listings surged by 5.4% year-over-year, with 12,086 properties entering the market in February 2025. This increase in inventory has provided buyers with more options, giving them greater negotiating power. Active listings also rose sharply, up 76% compared to the same period last year.
  3. Modest Price Adjustments
    The average selling price in February 2025 was $1,084,547, down 2.2% from February 2024. The MLS® Home Price Index (HPI) Composite Benchmark also declined by 1.8% year-over-year. These price adjustments reflect the impact of higher borrowing costs and a more balanced market.
  4. Affordability Challenges Persist
    TRREB President Electria Barry-Sprock highlighted that many households in the GTA are eager to purchase homes, but current mortgage rates make it difficult for the average household to comfortably afford monthly payments on a typical property. However, there is optimism that borrowing costs may decline in the coming months, which could improve affordability and stimulate market activity.
  5. Economic Uncertainty and Trade Concerns
    TRREB Chief Market Analyst Jason Mercer pointed out that uncertainty surrounding Canada’s trade relationship with the United States has likely contributed to a decline in consumer confidence. If trade uncertainties are resolved and borrowing costs trend lower, stronger home sales activity could emerge in the second half of 2025.

Looking Ahead

The February 2025 market report underscores the challenges facing the GTA housing market, particularly in terms of affordability and consumer confidence. However, there are reasons for optimism. If borrowing costs decline and trade uncertainties are resolved, the market could see a rebound in the latter half of the year.

The February 2025 market report paints a picture of a GTA housing market in transition. While high mortgage rates and economic uncertainty have dampened sales and prices, increased inventory levels and the potential for lower borrowing costs offer hope for a more balanced and accessible market in the near future. As always, staying informed and working with a trusted real estate professional will be key for buyers and sellers navigating these changing conditions.

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Disclaimer: All data and statistics are sourced from the Toronto Regional Real Estate Board (TRREB) Market Watch report for February 2025.