GTA Real Estate Update: February 2025 Market News

Hello, Toronto homeowners and buyers! We’re excited to share the latest February 2025 real estate stats from the Greater Toronto Area (GTA), brought to you by GTA REALTORS® and the Toronto Regional Real Estate Board (TRREB). Here’s what’s happening in our local market….

More Choices for Buyers

In February, home buyers across the GTA had plenty of options. Sales dropped by 27.4% compared to last year, with 4,037 homes sold through TRREB’s MLS® System. At the same time, new listings rose by 5.4%, reaching 12,066. That means more homes were available, giving buyers a strong position to negotiate. Whether you’re looking for a condo downtown or a house in the suburbs, this market is favoring those ready to make a move.

Why Are Sales Down?

High mortgage rates are making it tough for many families to afford monthly payments on a typical GTA home. As TRREB President Elechia Barry-Sproule put it, “Many households in the GTA are eager to purchase a home, but current mortgage rates make it difficult for the average household income to comfortably cover monthly payments on a typical property.” The good news? We expect borrowing costs to drop in the coming months, which could make buying a home easier soon.

On top of that, some buyers are holding off because of uncertainty about the economy and trade with the U.S. “If trade uncertainty is alleviated and borrowing costs continue to trend lower, we could see much stronger home sales activity in the second half of this year,” said TRREB Chief Market Analyst Jason Mercer. So, if you’re waiting for the right moment, keep an eye on these trends!

Prices Stay Steady but Slightly Lower

The average home price in February was $1,084,547, down 2.2% from last year. The MLS® Home Price Index, which tracks price trends, also dipped by 1.8%. Compared to January 2025, prices edged down a bit more after seasonal adjustments. For buyers, this means homes are still valuable but slightly more affordable than last year.

What’s Next for the Market?

With the Ontario election just wrapped up and federal politics shifting, housing is a big topic right now. TRREB CEO John DiMichele summed it up well: “Not only do existing policy makers and those vying for high public office need to make clear their direction on housing supply and affordability, but they also need to be clear on how they intend to tackle issues related to trade and the economy.” Clear plans from leaders could boost confidence and get more people buying and selling.

Let’s Talk About Your Next Step

Whether you’re thinking of buying your first home, upgrading, or selling in the GTA, we’re here to help. February’s stats show it’s a great time for buyers to explore their options, and we’d love to guide you through it. Reach out to us today—let’s make your real estate goals happen!

Stay tuned for more updates from your local experts at Evolved Realty