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In February 2025, the Greater Toronto Area (GTA) housing market experienced a notable downturn, with home sales declining by 27.4% compared to February 2024, totaling 4,037 transactions. This represents a significant drop from the October 2024 peak of 6,658 sales. Listings also decreased by 24.3% month-over-month to 12,066, though they were up 5.4% year-over-year. The Home Price Index Composite benchmark saw a slight decrease of 1.8% year-over-year, settling at $1,063,300, while the average selling price declined for the fourth consecutive month to $1,072,123.

Several factors have contributed to this market slowdown. Elevated mortgage rates have made it challenging for many households to afford monthly payments on typical properties, leading to reduced purchasing activity. Additionally, geopolitical conflicts and escalating trade tensions, particularly uncertainties in trade relationships with the United States, have dampened consumer confidence. This economic uncertainty has prompted potential homebuyers to adopt a cautious, wait-and-see approach.

Looking ahead, there is cautious optimism that alleviation of trade uncertainties and anticipated declines in borrowing costs could rejuvenate the housing market in the latter half of the year. Clear policy directions from government officials on housing supply, affordability, trade, and economic strategies are deemed crucial to bolster consumer confidence and stimulate market activity.

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