March 2025 Real Estate Market Update
The spring market is not off to a great start in the Toronto area, with March marking the lowest home sales for the month in more than two decades. This despite homeownership becoming more affordable, with borrowing costs and home prices having declined since March 2024.
Just over 5,000 homes traded hands in March, down 23.1% year-over-year. Sales were also down from February, bucking the trend of what usually would happen at this time year.
Ongoing economic uncertainty fuelled by the Trump administration’s flip-flopping trade policies, combined with the upcoming federal election here in Canada, are behind the renewed wait-and-see approach to home-buying.
While sales stalled, new listings continued to flood the market. March saw 23,452 properties listed for sale, an increase of 20.1% month-over-month. This places current inventory well-above the 10-year average, continuing February’s trend of oversupply, which peaked at 93% above historical norms. The additional listings have further shifted market conditions in favour of buyers, as the increased choice are giving them greater negotiating power.
Prices remained relatively flat month-to-month, with March experiencing a negligible gain of 0.8%. The average price was $1,093,254, a decrease of 2.5% from March 2024.
Detached home prices saw little movement, with the average sales price at $1,439,268, representing a monthly decline of less than half a per cent. Detached inventory dropped by approximately 2,000 properties, a 26.3% decline, bringing the total to just over 5,000 active listings at the end of March. Sales increased to 2,155 homes under contract, a 26% monthly gain, though still down 25% compared to last year.
The condo market experienced a similar monthly dip of less than 1%, with the average sales price at $682,019. Inventory fell sharply in this category, with 2,957 fewer active listings, resulting in a 38% monthly decline. Some 4,680 condos were actively listed at the end of March — a 40% decline from last year’s monthly inventory average of 7,814. Condo sales increased by 14.6% from February, resulting in 1,404 sales during March.
Townhome values once again surpassed the $1 million mark, with the average sale price reaching $1,001,043. Inventory dipped modestly, totalling 1,189 active listings, a 15% monthly decline. Sales saw a 25% monthly increase, with 505 properties going under contract in March.
Semi-detached homes posted the strongest monthly price gain among all asset classes, rising 3% to an average sales price of $1,111,791. Inventory declined by 18%, resulting in 767 active listings at month-end. Sales jumped 36% month-over-month, with 485 semi-detached properties sold.
As the Greater Toronto Area moves further into the spring market, home sales are expected to increase if trade issues are resolved or public policy choices help to mitigate the impact of tariffs. Should this not occur, the season may be sluggish for home sales, as homebuyers feel unnerved about the employment situation and won’t be willing to commit to monthly mortgage payments over the long-term. The months ahead will be critical in determining whether this elevated inventory converts intro stronger absorption or maintains a more tempered market pace.
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.
