February 2025 Real Estate Market Update

Homebuyers continue to benefit from substantial choice and negotiating power in the Greater Toronto Area (GTA). Home sales were down 27.4% in February, compared to the same month last year, while listing inventory remained high — an astonishing 93% above its historical average.

Despite the steady decline in interest rates since June 2024, current mortgage rates are still making it difficult for the average household to comfortably afford monthly payments on a typical property.

On top of lingering affordability concerns, homebuyers have become less confident in the economy. Uncertainty about Canada’s trade relationship with the United States have prompted some to take a wait-and-see approach toward buying a home.

Prices were down year-over-year by 2.2%, to $1,084,547 from $1,109,450 in February 2024. However, month-to-month, from January to February, prices rose 4.1% — an increase of $43,553.

Detached home prices continued to rise, with a 4.9% monthly bump, bringing the average price to $1,445,879. Inventory rose to 7,885, a 103% year-over-year increase. The growing supply has provided buyers with more options yet demand remains steady, supporting gradual price appreciation.

The semi-detached segment posted a 3% monthly gain, bringing the average sales price to $1,079,996. Inventory rose to 937 active listings, representing a 159% yearly increase.

Townhouse prices remained relatively stable, with an average price of $991,066. Inventory grew, marking a 125% yearly increase. Despite steady demand, the increased supply is preventing significant price movements in this segment.

The condo segment saw a modest price increase of 2.5% to $688,055. This marks the seventh consecutive month where condo values have remained below the $700,000 threshold. Inventory increased to 7,638 active listings, representing a 47.6% yearly jump. While higher inventory is offering buyers more choices, price fluctuations suggest a market still seeking equilibrium.

While sales activity has improved in recent months, rising inventory levels continue to shape market conditions across the GTA. If trade uncertainty is alleviated and borrowing costs continue to trend lower, much stronger home sales activity could be seen in the second half of this year.

If you would like to know how the real estate market performed in your neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.