Homebuyers continued to benefit from substantial choice in the Greater Toronto Area (GTA) resale market in February 2025, the Toronto Regional Real Estate Board (TRREB) reports. Home sales last month were down compared to the same period last year, while listing inventory remained high, providing substantial negotiating power for homebuyers.

“Many households in the GTA are eager to purchase a home, but current mortgage rates make it difficult for the average household to comfortably afford monthly payments on a typical property. Fortunately, we anticipate a decline in borrowing costs in the coming months, which should improve affordability,” says TRREB President Elechia Barry-Sproule.

Affordability concerns

“On top of lingering affordability concerns, homebuyers have arguably become less confident in the economy,” adds TRREB Chief Market Analyst Jason Mercer. “Uncertainty about our trade relationship with the United States has likely prompted some households to take a wait-and-see attitude towards buying a home. If trade uncertainty is alleviated and borrowing costs continue to trend lower, we could see much stronger home sales activity in the second half of this year.”

GTA realtors reported 4,037 home sales through TRREB’s MLS System in February 2025 – down by 27.4 per cent compared to February 2024. New listings in the MLS System amounted to 12,066 – up by 5.4 per cent year-over-year. On a seasonally adjusted basis, February sales were down month over month compared to January 2025.

Housing policy

The MLS Home Price Index Composite benchmark was down by 1.8 per cent year over year in February 2025. The average selling price, at $1.08 million, was down by 2.2 per cent compared to the February 2024. On a month-over-month basis, the MLS HPI Composite and the average selling price edged lower after seasonal adjustment.

“With the Ontario provincial election just behind us and the federal political situation in flux, there is a lot to consider from a policy perspective when it comes to housing,” says TRREB Chief Executive Officer John DiMichele. “Not only do policymakers and those vying for high public office need to make clear their direction on housing supply and affordability, but they also need to be clear on how they intend to tackle issues related to trade and the economy. Clear direction will go a long way towards strengthen consumer confidence.”