Greater Toronto home sales down as affordability, trade war weigh on buyers: board

In February 2025, home sales in the Greater Toronto Area (GTA) dropped by 28.5% compared to January, totaling 4,326 units, according to the Toronto Regional Real Estate Board (TRREB). citeturn0news4 This decline follows a 12.4% increase in January, indicating a sudden shift in the market.

Compared to February 2024, sales decreased by 27.4%. TRREB's chief market analyst, Jason Mercer, noted that ongoing affordability concerns and reduced confidence in the economy have contributed to this downturn. He highlighted that uncertainty about trade relations with the United States may have caused potential buyers to adopt a wait-and-see approach.

New listings in February fell by 24.3% from January, amounting to 14,053 units. However, on a year-over-year basis, new listings saw a 5.4% increase. Despite the rise in listings compared to the previous year, the significant monthly drop suggests that sellers might also be hesitant due to current economic uncertainties.

The MLS Home Price Index Composite Benchmark declined by 1.5% from January to February, bringing the average home price to C$1,063,300. This price is 1.8% lower than in February 2024, marking the third consecutive month of price decreases.

The broader economic context includes challenges such as elevated borrowing costs and trade tensions. In December 2024, home sales in the GTA had already fallen by 18.7% from November, reaching a five-month low. TRREB President Elechia Barry-Sproule attributed these conditions to high interest rates, which have posed significant affordability hurdles for buyers.

Looking ahead, market participants are closely monitoring economic indicators and trade developments. The current environment of reduced sales and price declines may continue if affordability issues and economic uncertainties persist. Both buyers and sellers are advised to stay informed and consider these factors when making real estate decisions in the coming months.