Home buyers in the Greater Toronto Area (GTA) saw more options in the resale market in February 2025, with high inventory levels continuing to shape the landscape. Home sales saw a decline compared to the same month last year, the increas of available listings gave buyers more negotiating power.

According to Elechia Barry-Sproule, President of the Toronto Regional Real Estate Board (TRREB), “Although many buyers in the GTA are eager to find their next home, higher mortgage rates continue to pose a challenge for households trying to manage monthly payments. The good news is that we expect borrowing costs to decrease in the coming months, which should help improve affordability.”

On March 12, the Bank of Canada dropped it's key by 25 basis point to 2.75 per cent. The drop was, in part, due to the trade war between the United States and Canada which shows no signs of abating in the near future. 

Jason Mercer, TRREB’s Chief Market Analyst, pointed out that buyers may be showing less confidence in the market. “The ongoing trade relationship uncertainties with the U.S. have caused some households to adopt a 'wait-and-see' approach when it comes to buying a home. However, if these concerns are resolved and borrowing costs continue to decrease, we could see stronger sales activity in the second half of this year,” Mercer said.

Here’s a snapshot of the key real estate numbers for February 2025:

• Home Sales: There were 4,037 home sales in February, a decrease of 27.4% compared to the same month last year.
• New Listings: The number of new listings rose by 5.4% year-over-year, totaling 12,066.
• Home Prices: The MLS® Home Price Index Composite benchmark dropped by 1.8% year-over-year, and the average selling price for homes in the GTA was $1,084,547, down 2.2% from February 2024.
• Month-over-Month: Both the MLS® HPI Composite and the average selling price saw slight declines from January 2025 on a seasonally adjusted basis.

While high inventory provides buyers with more choices and bargaining power, affordability remains a concern. Looking ahead, TRREB Chief Executive Officer John DiMichele emphasized that both provincial and federal leaders need to offer clear policies regarding housing supply, affordability, and trade. “With the Ontario election behind us and federal political uncertainty, clear direction from policymakers on housing and the economy will be crucial to restoring consumer confidence,” DiMichele said.

The market is currently in a holding pattern, but with potential shifts in borrowing costs and political clarity, we may see a more active real estate market later in the year. Stay tuned for more updates as the situation develops!