Home sales in the Greater Toronto Area (GTA) experienced a significant downturn in February, as macroeconomic challenges and mortgage costs deterred potential buyers. According to the Toronto Regional Real Estate Board (TRREB), home sales fell by more than one-quarter compared to the same period last year. The average selling price also declined by 2.2 percent to $1,084,547, reflecting a cautious market environment.
In its report released on March 5, 2025, the TRREB highlighted that the composite benchmark price, representing a typical home, decreased by 1.8 percent year-over-year. February saw 12,066 new property listings in the GTA, marking a 5.4 percent increase from the previous year. However, total inventory in the region surged by 76 percent to 19,536 properties, indicating a potential oversupply in the market.
Despite the increased listings, only 4,037 homes were sold last month, a sharp 27.4 percent decline from the 5,562 sales recorded in February 2024. Seasonally adjusted figures showed a 28.5 percent drop in sales from January, further emphasizing the market's sluggishness. Buyers retained substantial negotiating power, yet many adopted a "wait-and-see" attitude due to uncertainties surrounding Canada's trade relationship with the United States.
The report underlined that prospective buyers are apprehensive about current mortgage payments on typical properties. However, an expected decline in borrowing costs in the coming months may provide some relief and improve affordability, potentially revitalizing buyer interest.
Jason Mercer, TRREB’s chief market analyst, noted that while macroeconomic factors are influencing buyer behavior, these trends could shift with changes in financial conditions. The anticipation of lower borrowing costs could ease concerns over monthly payments and encourage home purchases.
