Toronto Home Sales Slide 23% In March As Listings Pool On The Market

Toronto's housing market faced a significant slowdown in March 2025, with home sales dropping by 23.1% compared to the same month last year. The Toronto Regional Real Estate Board (TRREB) reported only 5,011 homes sold, marking one of the slowest March performances in recent memory. This decline occurred despite the Bank of Canada's efforts to stimulate the market by reducing interest rates by 2.25 percentage points since June 2024.

While sales declined, the number of new listings surged. In March, 17,263 new properties were listed, a 28.6% increase from the previous year. This influx of listings has shifted the market dynamics, providing buyers with more options and greater negotiating power. TRREB President Elechia Barry-Sproule noted that the combination of lower borrowing costs and increased inventory has improved affordability for prospective homeowners.

Despite the increased supply, home prices have shown resilience. The average selling price in March was $1,093,254, down 2% from February. The MLS® Home Price Index Composite benchmark decreased by 3.8% year-over-year but remained flat compared to the previous month on a seasonally adjusted basis.

Economic uncertainties, particularly trade tensions with the United States, have contributed to buyer hesitation. U.S. President Donald Trump's recent imposition of a 10% tariff on all imports has raised concerns about Canada's economic stability. In response, Canadian Prime Minister Mark Carney has called a snap federal election for April 28 to address these challenges.

The downturn in sales was observed across various housing types. Detached home sales fell by 24.9%, condo apartments by 23.5%, townhouses by 23.2%, and semi-detached homes by 15.9% compared to March 2024.

Looking ahead, TRREB anticipates a total of 76,000 home sales in 2025, a figure well below the peak of 120,000 transactions in 2021. The board suggests that once economic conditions stabilize and consumer confidence returns, the housing market may experience a rebound.