The Greater Toronto Area (GTA) resale housing market continued to offer buyers an abundance of choices in February 2025. Home sales declined compared to the same period last year, while listing inventory remained high, giving homebuyers greater negotiating power.
Market Trends & Affordability Challenges
“Many households in the GTA are eager to buy a home, but elevated mortgage rates are making affordability a challenge,” said TRREB President Elechia Barry-Sproule. “Fortunately, we expect borrowing costs to decline in the coming months, which should help improve affordability and market activity.”
Beyond affordability concerns, economic uncertainty has also impacted buyer confidence. “Ongoing trade uncertainty with the United States has likely caused some households to take a ‘wait-and-see’ approach before making a purchase,” said TRREB Chief Market Analyst Jason Mercer. “If trade relations stabilize and borrowing costs continue to trend downward, we could see a significant rebound in home sales during the second half of 2025.”
GTA Housing Market Statistics – February 2025
- Home Sales: GTA REALTORS® reported 4,037 sales through TRREB’s MLS® System, marking a 27.4% decline from February 2024.
- New Listings: Increased by 5.4% year-over-year, reaching 12,066 new listings.
- MLS® Home Price Index (HPI) Composite Benchmark: Down 1.8% year-over-year.
- Average Selling Price: Dropped 2.2% to $1,084,547 compared to February 2024.
- Month-over-Month Trends: Seasonally adjusted, both the MLS® HPI Composite and average selling price edged lower compared to January 2025.
Impact of Political and Economic Uncertainty on Housing
“With the Ontario provincial election just behind us and ongoing political shifts at the federal level, housing policy remains a critical issue,” said TRREB Chief Executive Officer John DiMichele. “Both current policymakers and those seeking public office must outline clear strategies on housing supply, affordability, and economic stability. A well-defined approach will be essential to restoring consumer confidence and supporting the housing market.”
Looking ahead, market conditions in the GTA remain dynamic. If interest rates decline as expected and economic uncertainty eases, stronger sales activity could emerge in the latter half of the year. Buyers and sellers alike should stay informed and monitor shifts in mortgage rates, government policy, and broader economic conditions to make strategic real estate decisions.
Richard Wang 