06/03/2025
The media has been filled with political chatter, including the recent provincial election and the implementation of tariffs on goods entering the U.S. from Canada, Mexico, and China. As a result of both the challenging weather and political noise, home sales in February were down compared to the same period last year, while inventory of available homes remained high.
In February 2025, there were 4,037 home sales, down 27.4% from February 2024. Seasonally adjusted, February sales also saw a month-over-month decline compared to January 2025. The average selling price dropped to $1,084,547, a 2.2% decrease from the same month last year.
TRREB's Chief Market Analyst Jason Mercer noted that home buyers seem to be losing confidence in the economy. Uncertainty surrounding our trade relationship with the United States is likely causing some households to adopt a "wait-and-see" approach to purchasing a home. However, if trade uncertainties ease and borrowing costs continue to decrease, we could see a significant rebound in home sales during the second half of the year.
While uncertainty often presents challenges, it also brings opportunity. With some buyers and sellers choosing to stay on the sidelines, those who remain active in the market will find more opportunities. Despite sales volume decreasing by over 20% and the number of homes available for sale increasing, prices have only slightly softened, highlighting the resilience of the Greater Toronto Area's real estate market. We anticipate a decline in borrowing costs in the coming months, improving affordability and opening up a window of opportunity for those who stay engaged in the market's activity.
For any real estate inquiries, I'm always here to help. I look forward to connecting with you soon.
