Homeownership in the Greater Toronto Area (GTA) became more affordable in March 2025 compared to the previous year, as both borrowing costs and home prices declined over the past year, making monthly payments more manageable for households looking to buy a home.

Rising confidence

“Homeownership has become more affordable over the past 12 months, and we expect further rate cuts this spring,” says Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule. “Buyers will also benefit from increased choice, giving them greater negotiating power. Once consumers feel confident in the economy and their job security, homebuying activity should improve.”

“Given the current trade uncertainty and the upcoming federal election, many households are likely taking a wait-and-see approach to homebuying,” adds TRREB’s Chief Information Officer Jason Mercer. “If trade issues are solved or public policy choices help mitigate the impact of tariffs, home sales will likely increase. Homebuyers need to feel their employment situation is solid before committing to monthly mortgage payments over the long term.”

GTA realtors reported 5,011 home sales through TRREB’s MLS system in March 2025 – down by 23.1 per cent compared to March 2024. New listings in MLS amounted to 17,263 – up by 28.6 per cent year-over-year. On a seasonally adjusted basis, March sales were down month-over-month compared to February 2025.

Policy debate

The MLS Home Price Index Composite benchmark was down by 3.8 per cent year-over year in March 2025. The average selling price, at $1.09 million, was down by two per cent compared to the March 2024. On a month-over-month seasonally adjusted basis, the MLS HPI Composite was down and the average selling price was flat.

“While the policy debate heading into the federal election has rightly been focused on our cross-border trade relationship, it has also been important to see that the federal parties continue to view housing as a key priority based on the various election platforms,” says TRREB CEO John DiMichele. “This is in line with recent polling suggesting access to housing options that are affordable remains top-of-mind for all Canadians. Building this housing will be a key economic driver moving forward.”