Three years after the peak of Toronto’s real estate market, February 2025’s statistics paint a stark picture. Market activity has slowed significantly, and the numbers reveal key trends that buyers and sellers need to keep in mind.
The Market at a Glance
February 2025 marked one of the slowest sales months in the history of the Greater Toronto Area. While economic uncertainty continues to influence market conditions, several key factors have shaped the landscape:
Interest Rates and Economic Factors
Variable mortgage rates remained unchanged as the Bank of Canada did not hold a rate meeting in February. However, the bond market experienced fluctuations due to ongoing tariff discussions, leading to a rollercoaster effect on fixed mortgage rates. While rates increased earlier in the month, they later corrected slightly.
For those considering a purchase in 2025, speaking with a mortgage broker to secure a favorable rate remains a smart move. Many lenders offer the ability to lock in a rate now with the option to adjust if rates decrease later.
Condo Market Trends
Despite widespread discussions about a slowdown in the condo sector, condominiums accounted for 50% of all sales in February, mirroring January’s distribution. While inventory levels remain high, well-priced units with strong layouts continue to attract buyers. In particular, the Toronto Core (C01 and C08 districts) saw an increase in activity both month-over-month and year-over-year.
For buyers, this presents an opportunity to secure a well-located unit at a competitive price. For sellers, proper pricing and marketing strategies will be key to standing out in a crowded market.
Detached, Semi-Detached, and Townhouse Markets
While condos dominate in volume, other property types continue to attract interest:
Semi-detached homes remain competitive, with months of inventory staying at two months, a level typically associated with offer dates and multiple bids.
Townhouses and row houses saw inventory levels decline to 2.8 months, making them an increasingly attractive option for buyers priced out of the semi-detached market.
Detached homes vary significantly by price point and location. In highly desirable neighborhoods like Roncesvalles, Bloor West, Leslieville, and Danforth, multiple offers are still happening for well-presented and competitively priced properties.
What to Expect Moving Forward
With high inventory levels and cautious buyers, sellers must ensure their properties are well-priced, professionally marketed, and move-in ready to attract interest. While some areas and property types continue to see competition, the market overall favors buyers, particularly in the condo segment.
Looking ahead, the Bank of Canada’s next rate announcement on March 12 will be an important factor in determining buyer sentiment. Additionally, as we move into the traditionally busier spring market, activity levels may shift, presenting opportunities for both buyers and sellers.
Toronto’s real estate market is in a transition period, with economic uncertainty, shifting demand, and increased inventory shaping current trends. Whether you’re considering buying or selling, understanding these dynamics will be essential in making informed decisions.
The Market at a Glance
February 2025 marked one of the slowest sales months in the history of the Greater Toronto Area. While economic uncertainty continues to influence market conditions, several key factors have shaped the landscape:
- Sales Volume Decline: Sales were down 33% compared to a year ago.
- Active Listings Surge: Inventory levels increased by 45% year-over-year.
- Price Adjustments: Average prices across the GTA saw a 4% decline compared to last year.
Interest Rates and Economic Factors
Variable mortgage rates remained unchanged as the Bank of Canada did not hold a rate meeting in February. However, the bond market experienced fluctuations due to ongoing tariff discussions, leading to a rollercoaster effect on fixed mortgage rates. While rates increased earlier in the month, they later corrected slightly.
For those considering a purchase in 2025, speaking with a mortgage broker to secure a favorable rate remains a smart move. Many lenders offer the ability to lock in a rate now with the option to adjust if rates decrease later.
Condo Market Trends
Despite widespread discussions about a slowdown in the condo sector, condominiums accounted for 50% of all sales in February, mirroring January’s distribution. While inventory levels remain high, well-priced units with strong layouts continue to attract buyers. In particular, the Toronto Core (C01 and C08 districts) saw an increase in activity both month-over-month and year-over-year.
For buyers, this presents an opportunity to secure a well-located unit at a competitive price. For sellers, proper pricing and marketing strategies will be key to standing out in a crowded market.
Detached, Semi-Detached, and Townhouse Markets
While condos dominate in volume, other property types continue to attract interest:
Semi-detached homes remain competitive, with months of inventory staying at two months, a level typically associated with offer dates and multiple bids.
Townhouses and row houses saw inventory levels decline to 2.8 months, making them an increasingly attractive option for buyers priced out of the semi-detached market.
Detached homes vary significantly by price point and location. In highly desirable neighborhoods like Roncesvalles, Bloor West, Leslieville, and Danforth, multiple offers are still happening for well-presented and competitively priced properties.
What to Expect Moving Forward
With high inventory levels and cautious buyers, sellers must ensure their properties are well-priced, professionally marketed, and move-in ready to attract interest. While some areas and property types continue to see competition, the market overall favors buyers, particularly in the condo segment.
Looking ahead, the Bank of Canada’s next rate announcement on March 12 will be an important factor in determining buyer sentiment. Additionally, as we move into the traditionally busier spring market, activity levels may shift, presenting opportunities for both buyers and sellers.
Toronto’s real estate market is in a transition period, with economic uncertainty, shifting demand, and increased inventory shaping current trends. Whether you’re considering buying or selling, understanding these dynamics will be essential in making informed decisions.
