GTA home sales down as mortgage costs, trade war weigh on buyers

In February 2025, home sales in the Greater Toronto Area (GTA) dropped by 27.4% compared to the same month last year, according to the Toronto Regional Real Estate Board (TRREB). A total of 4,037 homes were sold, down from 5,562 in February 2024.

This decline is linked to high mortgage rates, making it hard for average households to afford typical property payments. TRREB President Elechia Barry-Sproule noted that many GTA households want to buy homes but struggle with current mortgage costs.

Economic uncertainty, especially concerning trade relations with the U.S., is also affecting buyer confidence. TRREB's chief market analyst, Jason Mercer, mentioned that such uncertainty might be causing potential buyers to hesitate.

Despite a 5.4% increase in new listings to 12,066 properties, total inventory soared by 76% to 19,536. This surplus gives buyers more options and negotiating power. Toronto-based broker Jessica Hammell observed that with more listings and less competition, buyers might have more leverage than before.

All property types in the GTA experienced sales declines in February. Detached homes saw a 31.1% drop, townhouses 30.6%, semi-detached homes 22.3%, and condos 22%.

Experts suggest that decisions to buy or sell should be based on individual goals rather than market headlines. Hammell emphasized that while economic factors are important, personal long-term objectives should guide such decisions.