After a sluggish January, the Toronto real estate market showed signs of early spring recovery in February. Prices bounced back, but overall sales remained weak, still lagging behind last year’s levels. The tug-of-war between buyers and sellers continues.
GTA Real Estate Key Market Highlights
- Sales Volume: 4,038 homes sold, a sharp 30.4% drop YoY, with only a 12.4% increase from January. Despite a slight rebound, buyer enthusiasm remains low.
- Average Home Price: $1,109,601, slightly lower than last year but up 5.8% MoM, indicating some price resilience.
- New Listings: 12,947 homes, up 10.9% YoY, holding steady compared to January. Sellers remain eager, but slow market absorption is driving inventory up to a high 4.8 months of supply.
- Active Listings: 19,298 homes, a 46% YoY surge and 19.5% increase MoM, heavily favoring buyers.
- Average Days on Market:28 days, 12% longer than last year but 9 days shorter than January, suggesting slightly improved absorption for certain properties.
GTA Real Estate Market Outlook for 2025
Tariffs:
- Economic Impact: The recent 25% tariff on Canadian imports imposed by U.S. President Trump introduces economic uncertainty, potentially dampening real estate demand as consumer confidence weakens.
- Construction Costs: Higher costs for imported building materials, particularly steel and aluminum, may drive up construction expenses, slowing new housing projects and exerting upward pressure on home prices.
Rate Cuts:
- Impact of Rate Cuts: On March 12, 2025, the Bank of Canada lowered its policy rate to 2.75%, marking the seventh cut since June 2024. While lower rates typically improve affordability, economic uncertainty and trade tensions have tempered housing demand.
- Further Rate Cuts? If economic growth continues to weaken, the Bank of Canada may implement additional cuts. However, their effectiveness in boosting demand may be limited amid ongoing market volatility.
Seasonal Trends:
- Spring Market Surge: Spring is traditionally a peak season for real estate, with sales activity expected to rise. Despite economic uncertainties and relatively low sales, home price remains strong, and the market is likely to see increased transactions as buyers and sellers capitalize on favorable conditions.
The market is in transition. Buyers may find good deals, while sellers need patience in a shifting landscape. Stay tuned for updates!
Schedule a free consultation and discover your personalized strategy for buying and selling your home!
"*" indicates required fields
Call Carefree Home Sold Realty Pris Han at 647-360-8963 now!
We can help you find ALL properties matching your exact search criteria, including off-market listings, exclusive listings, and even bank foreclosures! Contact us to get started for free.
