Toronto Real Estate Market Update – April 2025
The Greater Toronto Area’s (GTA) housing market has entered a new phase in 2025—one that offers both opportunity and hesitation. According to the latest figures from the Toronto Regional Real Estate Board (TRREB), homeownership in March 2025 became more affordable compared to the same time last year, thanks to a combination of falling home prices and easing borrowing costs.
Yet despite this positive shift in affordability, the number of homes sold has taken a notable dip, reflecting ongoing consumer caution amidst economic and political uncertainty.
Affordability Improves as Prices and Borrowing Costs Decline
The average selling price in March 2025 fell to $1,093,254, representing a 2.5% decline from March 2024. Similarly, the MLS® Home Price Index (HPI) Composite benchmark dropped 3.8% year-over-year. While these aren’t seismic shifts, they’re enough to ease pressure on buyers already grappling with high living costs and inflation.
At the same time, borrowing costs have declined over the past year, offering additional relief to prospective homeowners. With more rate cuts expected this spring, buyers could see their purchasing power grow even further in the months ahead.
“Homeownership has become more affordable over the past 12 months… Buyers will also benefit from increased choice, giving them greater negotiating power,” said TRREB President Elechia Barry-Sproule.
Sales Slow as Buyers Play the Waiting Game
Despite these affordability gains, sales activity has slowed significantly. TRREB reported 5,011 home sales in March 2025—a sharp 23.1% drop compared to the same month last year. This slowdown suggests that affordability alone isn’t enough to spark immediate action in the market.
Meanwhile, new listings surged by 28.6% year-over-year, creating more inventory and giving buyers more options—but also more reason to take their time and be selective.
“Given the current trade uncertainty and the upcoming federal election, many households are likely taking a wait-and-see approach to home buying,” said TRREB’s Chief Information Officer Jason Mercer.
The Bigger Picture: Trade, Jobs & Politics
Several factors beyond interest rates and prices are contributing to this market hesitancy. Chief among them: uncertainty around trade policies and the upcoming federal election. With tariffs and economic policy still in flux, many potential buyers are waiting for more stability before making a long-term financial commitment.
Employment confidence is another key variable. Buyers want to feel secure in their jobs before taking on a mortgage, especially in an unpredictable economic environment.
Looking Ahead: The Role of Policy and Housing Supply
Despite the current pause in buyer activity, housing remains front and center in the political landscape. TRREB CEO John DiMichele highlighted that all major federal parties are prioritizing housing in their platforms—a reflection of how critical the issue has become for Canadians.
“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,” DiMichele stated.
Increased housing supply, continued policy support, and improved economic clarity could combine to reignite demand later in 2025. For now, though, the GTA housing market appears to be in a holding pattern—more affordable, more balanced, but still waiting for that next push of consumer confidence.
Final Thoughts
If you’re a buyer, this may be the window of opportunity you’ve been waiting for—prices are down, selection is up, and interest rates are trending lower. But with big-picture uncertainties still at play, it’s understandable why many are proceeding with caution.
For sellers, realistic pricing and patience are key. The market has shifted from the frenzied pace of the pandemic years to something more measured—perhaps even healthier in the long run.
Whether you’re buying, selling, or just watching from the sidelines, one thing is clear: the GTA real estate market is changing, and staying informed is more important than ever.
