GTA Home Sales Hit 30-Year Low
February 2025 marked a historic low for GTA home sales, recording the lowest sales volume for this month since 1995. The GTA housing market continued to face challenges, with home sales plummeting almost 28% year-over-year. This decline is particularly significant, considering that 2024 was already a slow year for real estate.
Market Overview
- Total GTA Home Sales: 4,037 (↓ 27.4% YoY)
- Average Selling Price: $1,084,547 (↓ 2.2% YoY)
- Active Listings: 19,536 (↑ 76% YoY)
- Months of Inventory: 4.84 (↑ 144% YoY)
Key Market Drivers
The primary factor behind this market slowdown is economic uncertainty, largely driven by the impact of Donald Trump’s tariffs on Canada. With concerns about affordability and market conditions, many are waiting for a clearer economic picture before making major financial commitments.
Additionally, exceptionally harsh weather conditions in February likely contributed to suppressed sales activity.
Buyer Behavior & Market Dynamics
Despite the overall market slowdown, demand remains strong for well-priced, low-rise homes in the City of Toronto and Durham. Around 50% of sales in these areas are still selling above the list price, indicating continued buyer competition for desirable properties.
However, with higher inventory and fewer transactions, buyers currently have more choices and leverage in negotiations. Many are holding off in anticipation of mortgage rate cuts, which could improve affordability soon. BoC just had their 7th consecutive rate cut and is now at 2.75% and they are looking to revise the stress test or remove it completely which will improve affordability and mortgage qualification, stay tuned for more details.
What This Means for Buyers & Sellers
For buyers, now may be an opportune time to enter the market or upsize with increased inventory and better negotiation power. For sellers, strategic pricing and marketing remain critical to attract serious buyers in a competitive landscape.
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