Toronto Market Update- February 2025

March is here, and so is a little sunshine!

After all that February snow, it’s nice to see some warmer days ahead. But while the weather is heating up, the real estate market took a bit of a cool-down last month. Between political chatter (hello, provincial election and new tariffs on goods from Canada, Mexico, and China) and the winter slowdown, home sales in February were down compared to last year—while inventory remained high.

Last month, we saw 4,037 home sales, marking a 27.4% drop from February 2024. Seasonally adjusted, sales also dipped from January 2025. The average selling price landed at $1,084,547, down 2.2% year-over-year.

TRREB’s Chief Market Analyst, Jason Mercer, pointed out that uncertainty around our trade relationship with the U.S. is making some buyers hesitant. Many are taking a “wait-and-see” approach, but here’s the thing—when people hit pause, opportunity opens up for those ready to make a move.

Even with sales volume dropping over 20% and more homes hitting the market, prices have only softened slightly. That’s a testament to the GTA’s resilient market. Plus, with borrowing costs expected to decline in the coming months, affordability is set to improve—making now a great time to position yourself for the next upswing.

If you’ve got questions about the market or want to strategize your next move, I’m always happy to chat. Let’s make a plan that works for you!