Toronto Real Estate Market Update: February 2025
Toronto’s real estate market showed signs of slowing down in February. Sales dropped 27% compared to February 2024, largely due to external factors like tariff threats and the provincial election.
Despite the overall slowdown, the average price of detached homes in the 416 area rose by 7.6%. This marks a continued trend of steady price growth in the city, for resale homes, which have seen consistent appreciation over the last five months.
A key development is the Bank of Canada’s decision to cut its policy rate for the seventh consecutive time, bringing it down to 2.75%. This reduction could help stimulate buyer activity in the coming months.
Looking ahead, we expect more listings to hit the market as we approach the Spring season. While the pace of price increases may slow, values in both the 416 and 905 areas should continue to rise gradually.
While February saw some challenges, the Toronto real estate market remains resilient, and the outlook for Spring 2025 looks decent.
February year-over-year statistics:
New listings were up +5.4%
(+48.6% Jan. year over year)
Active listings were up +76%
(+70.2% Jan. year over year)
Sales were down -27.4%
(-7.9% Jan. year over year)
Average selling price $1,084,547 down -2.2%
($1,1040,994 up +1.5% Jan. year over year)
Average days on market were up from 37 to 43 days.
If you have any questions about the market, and/or when we are forecasting the best times to Sell or Buy will be. If you would like to learn more about our exceptional client-centric services, feel free to reach out, and we can speak more in person.