The Greater Toronto Area (GTA) real estate market continued to provide substantial choice for home buyers in February 2025, as resale inventory remained high while sales declined significantly compared to the previous year. With mortgage rates still elevated, affordability challenges persisted, but market experts anticipate improvements as borrowing costs are expected to drop later this year.

According to the Toronto Regional Real Estate Board (TRREB), home sales in February 2025 totaled 4,037 transactions, representing a 27.4% year-over-year decline. Meanwhile, new listings rose 5.4% YoY to 12,066, reinforcing buyer-friendly conditions with increased housing inventory.

Key Highlights of GTA’s February 2025 Housing Market

GTA Homebuyers Gain Negotiation Power Amid Market Slowdown

The GTA housing market in February 2025 clearly favoured buyers over sellers. The significant increase in available listings, combined with reduced sales, meant that buyers had greater negotiating power when making offers.

TRREB President Elechia Barry-Sproule acknowledged that while many GTA residents are eager to purchase homes, higher mortgage rates continue to impact affordability. However, she expressed optimism that borrowing costs could decline in the coming months, making homeownership more accessible.

“Many households in the GTA are eager to purchase a home, but current mortgage rates make it difficult for the average household income to comfortably cover monthly payments. Fortunately, we anticipate a decline in borrowing costs, which should improve affordability.”

With economic uncertainty still lingering—especially due to concerns over Canada’s trade relationship with the U.S.—many potential homebuyers are choosing to wait and see before making a purchase decision.

TRREB Chief Market Analyst Jason Mercer highlighted this sentiment, stating that if economic conditions stabilize and borrowing costs decrease, the second half of 2025 could see a rebound in sales activity.

“If trade uncertainty is alleviated and borrowing costs continue to trend lower, we could see much stronger home sales activity later this year.”

Home Prices Decline: What It Means for Sellers & Buyers

In addition to lower sales volume, GTA home prices also experienced a moderate decline in February 2025:

• The MLS® Home Price Index (HPI) Composite Benchmark declined by 1.8% YoY
• The average selling price fell 2.2% YoY to $1,084,547

On a seasonally adjusted basis, both the HPI Composite Benchmark and the average home price dropped slightly compared to January 2025, signaling a continued cooling in the market.

For Home Sellers:

• Sellers must price homes competitively to attract buyers in the current environment.
• Longer listing times are likely, as more inventory means buyers have multiple options.

For Home Buyers:

• More inventory = more choices and stronger negotiation power.
• Lower prices + potential rate cuts = improved affordability in the coming months.

Market Outlook: What to Expect in the Coming Months

Several key factors will shape the GTA housing market in 2025:

1. Interest Rate Cuts Could Revive Market Activity

Experts predict that Canada’s central bank may start cutting interest rates in mid-to-late 2025, which could lead to a surge in buyer demand. Lower rates will make mortgage payments more manageable, increasing housing affordability.

2. Economic & Trade Uncertainty Remains a Concern

Ongoing trade negotiations with the U.S. and overall economic stability will impact consumer confidence. If trade relations improve and economic uncertainty diminishes, more buyers may enter the market.

3. Policy Changes on Housing Supply & Affordability

With the Ontario provincial election behind us and federal policies in flux, housing supply and affordability remain hot-button issues. TRREB CEO John DiMichele emphasized the need for clear government direction:

“Policy makers need to clarify their plans for housing supply and affordability, as well as trade and economic strategies. Clear direction will go a long way to strengthen consumer confidence.”

4. Potential for a Stronger Second Half of 2025

If interest rates decrease and economic confidence rebounds, the GTA real estate market may experience a surge in sales activity in late 2025. Buyers who are currently waiting on the sidelines may re-enter the market, leading to increased competition.

Final Thoughts: Is Now a Good Time to Buy in GTA?

While February 2025 presented challenges for home sellers, it provided opportunities for buyers. With a higher inventory of listings, softer pricing, and the potential for lower interest rates, buyers may find favorable conditions to purchase homes in the GTA.

For Sellers: Pricing competitively and being patient will be key to securing a sale.

For Buyers: Now is the time to explore options and prepare for potential mortgage rate decreases later in the year.

As the market evolves, keeping an eye on mortgage rate trends, economic conditions, and government policy decisions will be essential for anyone planning to buy or sell in the GTA real estate market.

Check Out My Current Listings Below!

Frequently Asked Questions (FAQs)

1. Why did GTA home sales decline in February 2025?

Home sales dropped 27.4% YoY due to high mortgage rates, economic uncertainty, and cautious buyer sentiment amid trade concerns.

2. Are home prices expected to drop further in 2025?

While prices dipped in February 2025, future trends will depend on interest rate cuts and economic conditions. A rebound is possible in late 2025 if borrowing costs decrease.

3. Is now a good time to buy a home in GTA?

Yes, buyers currently have strong negotiating power, a higher selection of listings, and may benefit from potential rate cuts later in 2025.

4. What impact will lower interest rates have on the housing market?

Lower rates will increase affordability, potentially leading to higher sales activity and price stabilization later in the year.

5. What should sellers do in the current market?

Sellers should price competitively, stage homes effectively, and be prepared for longer listing times due to increased inventory.

6. How does government policy impact the real estate market?

Housing policies on supply, affordability, and economic stability significantly influence market trends and consumer confidence.

The real estate market inside scoop for the community you love. See homes that are for sale and have recently sold. Find out if home sales in your neighbourhood are trending up or down. See what homes around you are currently selling for.

Discover Modern Elegance in Countryside Pointe: A Stunning 2-Year-Old Semi-Detached Home

If you’re searching for a home that combines modern elegance, energy efficiency, and a serene setting, look no further than this exquisite 2-year-old semi-detached home in the newly created subdivision of Countryside Pointe in Uxbridge, Ontario. Designed with timeless aesthetics and thoughtful features, this property offers the perfect blend of style, functionality, and sustainability. Let’s take a closer look at what makes this home so special.

A Timeless Exterior

From the moment you arrive, the home’s captivating blend of brick, stone, and stucco exterior commands attention. The architectural details, including brick arches, decorative stone accents, and soldier coursing, create a sophisticated curb appeal. The maintenance-free aluminum soffit, fascia, and eaves troughs ensure durability, while the premium sectional roll-up garage door with decorative windows adds a touch of elegance.

The professionally graded and sodded lot is complemented by precast slab walkways and steps, leading you to the brushed nickel front door. Coach lamps at the garage and front door, along with an exterior light fixture at the rear door, provide both functionality and charm.

Step Inside: A Spacious and Inviting Interior

As you step into the spacious foyer, you’re greeted by soaring ceilings and a graceful oak staircase with upgraded spindles. The main level features a harmonious blend of hardwood floors and ceramic tiles, accentuated by 9-foot ceilings that create an open and airy atmosphere.

The open-concept kitchen is a chef’s dream, complete with a centre island, stainless-steel sink, and quality cabinetry selected from the vendor’s standard samples. The kitchen seamlessly flows into the living and dining areas, making it an ideal space for entertaining. A gas fireplace with a white-painted mantel and marble surround adds warmth and ambiance, while a sliding patio door leads to the wooden deck, offering breathtaking views of the fully fenced backyard and expansive farmland beyond.

Upstairs: Comfort and Convenience

The second floor is designed with comfort and practicality in mind. Three generously sized bedrooms, each adorned with luxurious high-end carpeting, provide ample space for relaxation. The master ensuite is a true retreat, featuring a double sink vanity, an oval tub, and a shower with a standard marble surround.

A conveniently located laundry room adds to the functionality of this floor plan, making everyday tasks a breeze. The second floor also features stippled ceilings with smooth borders, adding a touch of sophistication to the space.

Unfinished Basement: Endless Possibilities

The unfinished basement is a blank canvas waiting for your personal touch. With 8-foot ceilings, a rough-in for a full 4-piece bathroom, and its own entrance, this space is ideal for creating a secondary living suite, home gym, or recreational area. The poured concrete basement walls are damp-proofed and wrapped with R20 insulation, ensuring durability and energy efficiency.

Energy-Efficient Features

This home is equipped with a range of energy-saving features, including:

• An upgraded on-demand hot water system for efficiency and convenience.
• An ERV/HRV system for optimal temperature control and indoor air quality.
• A heat recapture coil for water, further enhancing sustainability.
• High-efficiency forced gas central heating and a rough-in for central air conditioning.
• R60 attic insulation, R24 exterior wall insulation, and R20 basement insulation wrap.
• Energy Star certification, ensuring the home meets the highest standards of energy efficiency.

Quality Construction and Finishes

Built with quality construction and attention to detail, this home features:

• Poured concrete basement walls with additional foundation wrap for enhanced water resistance.
• Steel post and beam construction for added durability.
• Engineered truss-joist floor systems to minimize the need for structural posts.
• 2×6 wood frame construction and fully sealed windows and exterior doors for superior insulation.

Additional Features

• A direct access man door from the garage to the main floor hallway for added convenience.
• Two exterior water taps, one in the garage and one at the rear of the home.
• White switches and receptacles throughout, with ground fault interrupter protection in all bathroom electrical outlets.
• Rough-ins for central vacuum, cable TV, and telephone in key areas.

Live the Dream in Countryside Pointe

This stunning 2-year-old semi-detached home offers the perfect combination of modern comfort, energy efficiency, and serene living in the beautiful community of Countryside Pointe. Whether you’re entertaining guests in the open-concept living space, enjoying the tranquility of the backyard, or customizing the unfinished basement to suit your needs, this home is designed to meet the demands of modern living.

Don’t miss the opportunity to make this exceptional property your own. Schedule a viewing today and experience the elegance and functionality of this remarkable home.

For more information or to arrange a private showing, contact me at Gerald-Lawrence@ColdwellBanker.ca. Your dream home awaits!

The real estate market inside scoop for the community you love. See homes that are for sale and have recently sold. Find out if home sales in your neighbourhood are trending up or down. See what homes around you are currently selling for.