“Be fearful when others are greedy and be greedy when others are fearful” - Warren Buffett
As of March, 2025, Toronto's real estate market is experiencing notable shifts influenced by economic uncertainties and evolving buyer behaviour.
Market Activity and Sales Trends
In February 2025, the Greater Toronto Area (GTA) reported 4,037 home sales, marking a 27.4% decrease compared to February 2024. This decline follows a 12.4% increase in January 2025, indicating a significant month-over-month downturn.
Pricing Trends
The average selling price in February 2025 was $1,084,547, reflecting a 2.2% decrease compared to the same month in the previous year. The MLS® Home Price Index Composite benchmark also saw a year-over-year decline of 1.8%, reaching $1,063,300.
Supply Dynamics
New listings in February 2025 totaled 12,066, up by 5.4% year-over-year. However, on a seasonally adjusted basis, new listings decreased by 24.3% compared to January 2025, indicating a potential tightening of supply in the coming months.
Economic Factors
Trade uncertainties, particularly concerns about the trade relationship with the United States, have impacted homebuyers' confidence, leading to a more cautious approach in the market. Additionally, higher borrowing costs continue to affect affordability, contributing to the observed decline in sales.
Looking Ahead
The current market conditions, characterized by declining sales and stable pricing, present both challenges and opportunities. Buyers may find increased negotiating power due to reduced competition, while sellers need to adopt strategic pricing and marketing approaches to attract potential buyers. Staying informed and consulting with Tyler Koeller Real Estate can help navigate this evolving landscape.