Toronto Real Estate Enters A Bear Market, Sales Plunge & Inventory Rips

Toronto's housing market has officially entered a bear phase, marked by a significant drop in home sales and a surge in available listings. According to the Toronto Regional Real Estate Board (TRREB), March 2025 witnessed the slowest start to the spring market in over a decade. The benchmark price for a typical home fell by 0.5% to $1,068,500, representing a 3.8% decrease compared to the same month last year.

Home sales in the Greater Toronto Area declined sharply, with only 5,011 units sold in March—a 23.1% drop from the previous year and the lowest for the month in at least 15 years. In contrast, new listings surged by 28.6% to 17,263 homes, the largest increase in three years. This imbalance between supply and demand has pushed the sales-to-new-listings ratio down to 29%, indicating a buyer's market where prices are expected to continue falling.

The decline in sales is attributed to growing economic uncertainties, including a looming trade conflict with the United States and an upcoming federal election. These factors have made potential buyers hesitant, despite increased affordability and more options in the market. TRREB President Elechia Barry-Sproule noted that while homeownership has become more affordable over the past year, buyers are waiting for greater economic stability before making long-term commitments.

The downturn is not limited to resale homes; new home sales have also plummeted. In December 2024, new home sales in Toronto hit a 34-year low, with only 9,816 units sold throughout the year—a 47% drop from 2023 and 69% below the 10-year average. Developers are now facing a backlog of unsold inventory, with 21,787 homes remaining on the market. citeturn0search6

Despite the current challenges, there is cautious optimism that the market could stabilize if economic conditions improve. Further interest rate cuts and the resolution of trade tensions may encourage buyers to return. However, until consumer confidence is restored, the Toronto real estate market is expected to remain sluggish, with continued downward pressure on prices.

In summary, Toronto's real estate market is experiencing a significant slowdown, characterized by declining sales, increasing inventory, and falling prices. While this presents opportunities for buyers, the overall market outlook remains uncertain, heavily influenced by broader economic factors and consumer sentiment.