February 2025 Real Estate Market Update

What Can Sellers Expect in Today’s Market?

Sellers in the GTA can expect a more competitive market due to increased listing inventory and lower buyer demand. Home sales in February 2025 were down by 27.4% compared to last year, and average selling prices have dropped by 2.2% year-over-year. With more homes available and fewer buyers actively making offers, sellers may need to be more flexible on pricing and negotiations to attract interest. However, as borrowing costs are expected to decline later in the year, market conditions may improve in the coming months.

What Can Buyers Expect in Today’s Market?

Buyers currently have more choices and greater negotiating power in the GTA real estate market. Listing inventory remains high, and prices have softened slightly, giving buyers more opportunities to find a home within their budget. However, affordability remains a concern due to current mortgage rates, which are limiting many households' ability to buy. If interest rates decrease as expected, buyer confidence and activity may increase in the second half of the year. Those who act now may be able to secure a home at a lower price before competition picks up.

Overall, the 2025 GTA housing market is shaping up to be more active in the coming months, with the potential for increased sales and moderate price growth. Buyers will benefit from lower mortgage rates and a higher supply of listings, while sellers, particularly those with well-priced and well-maintained properties, can expect steady demand as the market stabilizes. However, economic uncertainties and concerns over trade relationships may impact confidence in the short term. As the market moves into the spring season, both buyers and sellers should stay informed and prepared for changing conditions.

Thinking about buying or selling in 2025? Contact me today to discuss your real estate goals and find the right opportunity for you!