GTA Housing Inventory Stays High

Giving Buyers More Options and Negotiation Power. GTA Real Estate Market Update – February 2025: More Choices & Negotiation Power for Buyers

Homebuyers in the Greater Toronto Area (GTA) continued to benefit from a high inventory of resale homes in February 2025. While sales were lower compared to the same period last year, the increase in available listings has provided buyers with greater options and stronger negotiation power.

Market Trends & Buyer Confidence

“Many households in the GTA are eager to purchase a home, but current mortgage rates make it difficult for the average household to afford monthly payments,” said TRREB President Elechia Barry-Sproule. “Fortunately, we anticipate a decline in borrowing costs in the coming months, which should improve affordability.”

Beyond mortgage rates, some homebuyers in Toronto, Vaughan, Richmond Hill, and Markham are cautious due to economic uncertainty. TRREB Chief Market Analyst Jason Mercer noted that concerns about Canada’s trade relationship with the U.S. may be causing some buyers to take a wait-and-see approach. However, if trade uncertainty eases and borrowing costs decline, home sales in the GTA real estate market could see a rebound later this year.

Key GTA Market Statistics – February 2025

• Total GTA home sales: 4,037 (down 27.4% from February 2024)
• New listings: 12,066 (up 5.4% year-over-year)
• MLS® Home Price Index Composite Benchmark: Down 1.8% year-over-year
• Average selling price: $1,084,547 (down 2.2% compared to February 2024)
• Month-over-month trends: Both the MLS® HPI Composite and average selling price declined slightly after seasonal adjustments

What This Means for Buyers & Sellers

With more homes for sale in Toronto, Vaughan, Richmond Hill, and Markham, buyers have more options and negotiation leverage than in previous years. However, affordability remains a challenge due to mortgage rates. Sellers should ensure their homes are competitively priced and well-presented to attract serious buyers.

Looking Ahead: Will the Market Rebound?

“With the Ontario provincial election behind us and ongoing political shifts at the federal level, there is a lot to consider regarding housing policy,” said TRREB CEO John DiMichele. “Government decisions on housing affordability, supply, and economic stability will play a key role in shaping consumer confidence.”