March 5th, 2025 | Buyers
Toronto Real Estate Market Update: February 2025 – Buyers Gain the Upper Hand
The Greater Toronto Area (GTA) real estate market continued its shift in February 2025, with sales activity slowing while inventory levels remained high. With more homes on the market and buyers holding greater negotiating power, the question remains: is now the right time to make a move?
Market at a Glance
- Total Sales: 4,037 (-27.4% YoY)
- New Listings: 12,066 (+5.4% YoY)
- Active Listings: 19,536 (+76% YoY)
- Average Price: $1,084,547 (-2.2% YoY)
- Months of Inventory: 3.8 months (approaching a balanced market)
What’s Happening in the Market?
Sales are down, inventory is up. The market saw a significant drop in sales compared to last year, while active listings surged. This means buyers have more choices, and competition among sellers is increasing.
Prices are declining across all home types. While detached homes remain the most expensive at $1,445,879, the biggest price declines were seen in semi-detached homes (-5.3%) and condos (-4.7%), indicating a cooling demand in those segments.
Economic Uncertainty is Holding Buyers Back. Higher borrowing costs (BoC rate at 5.2%) and uncertainty in the economy are making buyers hesitant. However, a potential interest rate drop later this year could improve affordability.
Opportunities & Challenges
For Buyers:
More choices and less competition
Potential price negotiations in your favor
Higher borrowing costs still impact affordability
For Sellers:
More competition means pricing needs to be strategic
Homes that aren’t well-presented or priced correctly may sit longer
Well-marketed properties can still sell at strong prices
Looking Ahead
If interest rates decrease later in 2025, we could see a rebound in demand, particularly in the second half of the year. In the meantime, it’s a market where buyers hold the power, and sellers need to adjust their strategies accordingly.
Thinking of buying or selling in this shifting market? Let’s chat about your best move!
