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February continued to favor home buyers in the Greater Toronto Area (GTA) market, with high inventory levels providing substantial negotiating power. While sales declined compared to last year, buyers had more choice and room to negotiate prices in a market still adjusting to elevated borrowing costs.
Buyers Hold Off as Mortgage Rate Cuts Loom
“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 on a typical property. Fortunately, we anticipate a decline in borrowing costs in the coming months, which should improve affordability,” said TRREB President Elechia Barry-Sproule.
With economic uncertainty compounding affordability concerns, some buyers are taking a wait-and-see approach. Trade relations with the United States remain a concern, leading to hesitation among potential homebuyers. If these uncertainties ease and borrowing costs trend lower, confidence could rebound, driving stronger sales activity later in the year.
Detached Homes Dominate as Condo Market Adjusts
Within all TRREB areas, detached homes remained the dominant property type, accounting for 42.3% of all sales, with 1,706 transactions at an average price of $1,445,879. However, this segment experienced the steepest year-over-year decline, with sales dropping 31.1% across the GTA. Condo apartments comprised 30.3% of total sales, with 1,225 units sold at an average price of $688,055. Although condo sales throughout the TRREB area declined 22% year-over-year, prices remained relatively stable, dipping just 1.3%.
Looking at Toronto specifically, 1,540 homes were sold in February at an average price of $1,087,077, with properties spending an average of 30 days on the market. Central Toronto saw the highest sales activity, recording 775 transactions at an average price of $1,155,470 alongside 2,574 new listings, indicating strong seller participation.
Where Were Buyers Finding deals in Toronto?
Detached homes priced between $1,000,000 and $1,249,999 were the most active, with 792 sales. Homes priced between $900,000 and $999,999 followed closely, with 337 transactions. At the luxury end, 401 detached homes sold for over $2 million.
Condo apartment sales were strongest in the $500,000 to $599,999 range, with 774 transactions, while the $600,000 to $699,999 range accounted for 557 sales.
For townhouses, the $800,000 to $899,999 range led with 193 sales, followed by 170 transactions in the $900,000 to $999,999 range.
Fewer Sales, Faster Turnaround in Halton Region
Halton’s market is shifting—sales dropped nearly 10%, yet homes are selling 31% faster, with the average days on market (PDOM) falling from 54 to 37 days. Burlington and Halton Hills saw the biggest declines in market time, dropping to 37 and 30 days, respectively, despite fewer sales. Meanwhile, Milton and Oakville followed similar trends, showing that while some buyers remain cautious, those ready to act are moving quickly.
Despite sales dropping nearly 10%, Halton’s inventory surged to a 17.45% increase in active listings. Burlington’s prices slipped, and Milton saw both sales and prices decline. Halton Hills had the most significant sales drop, yet homes sold nearly 45% faster to an average of 30 days on the market. This ultimately reflects strong demand for well-priced listings. Even with more choices for buyers, homes are selling faster, proof that competitively priced properties continue to move, keeping the market active.
Buyers Hold the Upper Hand in Peel Region
Peel’s market softened, with sales down 13.35%, while inventory rose 12.39%. Brampton saw the sharpest drop in sales, falling 25.07%, and prices dipped slightly. In contrast, though prices declined, Mississauga’s semi-detached home sales rose 19%. Townhouse and condo sales in both cities took a hit, signaling weaker investor interest. Buyers have the advantage with more homes on the market and demand cooling.
What’s Next? The Market Awaits Lower Borrowing Costs
Mortgage rate cuts and increased inventory are expected in the coming months, positioning the market for greater activity in the second half of 2025. Currently, buyers hold significant negotiating power, but as borrowing costs decline, demand may rise, leading to a more competitive market.
“On top of lingering affordability concerns, home buyers have arguably become less confident in the economy. Uncertainty about our trade relationship with the United States has likely prompted some households to take a wait-and-see attitude towards buying a home. If trade uncertainty is alleviated and borrowing costs continue to trend lower, we could see much stronger home sales activity in the second half of this year,” said TRREB Chief Market Analyst Jason Mercer.
For those considering buying or selling this spring, staying ahead of these shifts will be crucial for making informed real estate decisions in Toronto’s evolving market.
Our real estate agents are in your city and available to help you prepare. Whether you have questions about today’s market or are looking for more information about when the right time for you to buy is, contact us today for more details.
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