Toronto Real Estate Market Update – March 2025
The Toronto Regional Real Estate Board (TRREB) has released its February 2025 Market Report, revealing notable shifts in unit sales, average prices, and market conditions. The data suggests a slowdown in sales activity compared to last year, alongside a modest dip in average home prices. Let’s break down the numbers and explore what this means for buyers, sellers, and investors in the Greater Toronto Area (GTA).
Key Highlights – February 2025
• Total Unit Sales: 4,037 (-27.4% from February 2024)
• Average Sale Price: $1,084,547 (-2.2% from February 2024)
• Average Days on Market: 28 days (up from 25 days in February 2024)
The market has clearly slowed down in terms of transactions, with a significant 27.4% drop in unit sales year-over-year. However, prices have remained relatively stable, with only a 2.2% decline in the average sale price.
This suggests that while buyer demand has softened, home values remain strong due to limited supply and persistent affordability challenges.
Breakdown by Property Type
Detached Homes
• 416 Area (Toronto Proper): 411 sales, $1,782,262 average price
• 905 Area (GTA Suburbs): 1,295 sales, $1,339,120 average price
Detached home sales remain the most expensive segment, particularly in Toronto (416), where the average price is nearing $1.8 million. The 905 region offers more affordability, with the average detached home priced around $1.34 million, but sales volume is notably higher in the suburban areas.
Semi-Detached Homes
• 416 Area: 145 sales, $1,275,214 average price
• 905 Area: 211 sales, $945,841 average price
Semi-detached homes continue to offer a mid-range alternative for buyers who want more space than a condo but can’t afford a detached home. Prices in Toronto proper remain well above $1.27 million, while 905-area semis are priced below $1 million—making them a more attractive option for families seeking affordability.
Townhouses
• 416 Area: 143 sales, $1,028,339 average price
• 905 Area: 557 sales, $881,482 average price
Townhouses remain an in-demand segment, particularly in the 905, where affordability is better, and there are more sales. In Toronto, the average townhouse price is now over $1 million, pushing some buyers toward condos or suburban alternatives.
Condos
• 416 Area: 830 sales, $724,632 average price
• 905 Area: 395 sales, $611,198 average price
Condominiums continue to be the most affordable housing option, with average prices under $750K in Toronto and around $611K in the 905. However, the drop in sales indicates that rising interest rates and affordability concerns may be keeping first-time buyers on the sidelines.
Market Trends & Insights
1. Sales Are Down, But Prices Are Holding
The 27.4% drop in sales suggests that buyers are being cautious, possibly due to high interest rates and economic uncertainty. However, prices have only slightly decreased (2.2%), meaning sellers are not yet feeling the pressure to lower prices dramatically.
2. Higher Days on Market – A Shift Toward a Buyer’s Market?
Homes are now staying on the market for an average of 28 days, up from 25 days last year. This suggests that buyers are taking longer to make decisions, and sellers may need to adjust pricing expectations or offer incentives to attract offers.
3. Condos & Townhomes Remain Popular in 905
With affordability becoming a key issue, more buyers are turning to suburban townhomes and condos as realistic alternatives to detached or semi-detached homes.
4. Interest Rates & Affordability Continue to Shape the Market
The Bank of Canada’s interest rate decisions in 2025 will play a crucial role in determining whether sales rebound or remain sluggish. Many potential buyers are waiting to see if rates drop before committing to a purchase.
Opportunities for Buyers & Sellers
For Buyers:
• Less Competition: With fewer buyers in the market, now may be a good time to negotiate better deals.
• Potential for Price Corrections: While prices haven’t dropped dramatically yet, some sellers may be willing to accept lower offers due to slower sales.
For Sellers:
• Price Realistically: Overpricing your home could lead to it sitting on the market longer. Competitive pricing is key in this slower market.
• Highlight Unique Features: With buyers being more selective, properties that offer extra space, upgrades, or proximity to transit will stand out.
Final Thoughts: What’s Next for the Toronto Real Estate Market?
While the market slowdown is evident, home prices remain relatively stable—indicating that Toronto’s housing demand is still strong. The coming months will likely be influenced by interest rate changes, economic conditions, and seasonal trends as we head into the typically busier spring market.
For buyers, this could be a great time to enter the market with less competition, while sellers should focus on strategic pricing and marketing to attract serious offers.
