Three years have passed since the peak of the Toronto real estate market, and February 2025 data provides valuable insights into where the market stands today. With shifting inventory levels, changing buyer demand, and the broader economic environment in play, this update examines key trends shaping the housing market in Toronto and the Greater Toronto Area (GTA).
Market Performance Overview
February’s numbers indicate a noticeable shift in market activity. Active listings across the GTA have increased by 76% year-over-year, significantly expanding housing options for buyers. However, the number of sales has dropped by 27% compared to last year, signaling a slowdown in transaction activity. When compared to February 2022, sales are now less than half of what they were at the market’s height, underscoring the major changes in buyer sentiment.
The average price of a home in the GTA declined by 2% year-over-year, reflecting a market adjusting to increased supply and tempered demand. Interestingly, Toronto proper has shown resilience, with prices rising 1.4% from last year, highlighting the continued appeal of homes within the city’s core.
Key Market Indicators
One of the most important metrics in real estate is months of inventory, which measures how long it would take for all active listings to sell at the current pace of transactions. In the GTA, this number has climbed to 4.84 months, meaning that only one in every five properties listed for sale is currently selling. By contrast, last year at this time, one in every two properties was selling. This shift reflects a more balanced, or even slightly buyer-favored, market compared to previous years.
Another notable change is the average days on market, which now stands at 32 days. This represents an increase from previous years when homes were moving much faster. With increased inventory and more cautious buyers, homes are taking longer to sell, and bidding wars are becoming less common outside of the most sought-after neighborhoods.
Segment Breakdown: Detached, Semi-Detached, Townhouses, and Condos
Detached Homes
Detached home sales remain steady, but pricing has softened. The average sale price for a detached home in Toronto sits at $1.63 million, down from the February 2022 peak of nearly $1.95 million. Buyers seeking move-in-ready properties in desirable neighborhoods continue to show interest, though the days of rapid price increases appear to be behind us.
Semi-Detached Homes
Semi-detached homes continue to be one of the most competitive segments in the Toronto market, with limited inventory driving demand. The average price for a semi-detached property is now just under $1.28 million, representing a decline of about $200,000 since March 2022. Despite this, well-located semis are still receiving strong interest, often selling within a few days of being listed.
Townhouses
The townhouse segment is experiencing tightening inventory, with fewer available units compared to other property types. Townhouse prices currently average $878,000, down about $110,000 from their peak in mid-2022. This segment remains attractive to buyers seeking more space than a condo without the price tag of a detached home.
Condominiums
Condos have been a major point of discussion, with nearly 5,000 active listings on the market in Toronto alone. Despite the high inventory levels, condo sales have increased slightly from the previous month, showing signs of stabilization. A striking statistic is that 57% of all condo sales in February were for two-bedroom units, demonstrating strong demand for more spacious layouts. The benchmark price for condos sits at $674,000, down from $800,000 in April 2022.
Economic Factors Impacting the Market
Interest rates remain a key driver of real estate activity. The Bank of Canada’s next rate announcement on March 12 will be closely watched, as a rate cut could stimulate buyer demand. Historically, falling rates have encouraged more activity, but some buyers are choosing to wait, anticipating better mortgage terms in the coming months.
Additionally, economic uncertainty, including global trade concerns and inflationary pressures, has introduced caution among buyers. The combination of higher inventory and a slower pace of sales suggests that buyers are being more selective, looking for value before making a purchase decision.
Looking Ahead: Spring Market Expectations
As the market transitions into the spring season, traditionally one of the busiest times of the year, several factors will influence trends:
The Toronto real estate market has undergone significant changes since its peak in 2022. While sales are down and inventory is rising, the city’s housing market remains dynamic, with pockets of strong activity, particularly in the semi-detached and two-bedroom condo segments.
For buyers, this shift represents an opportunity to explore more choices without the pressure of bidding wars. For sellers, proper pricing and presentation are crucial in an environment where competition has increased.
The coming months will provide further clarity on where the market is heading, with interest rates and economic conditions playing key roles in shaping demand. As always, staying informed on the latest data and market trends is essential for making well-informed real estate decisions in 2025.
Market Performance Overview
February’s numbers indicate a noticeable shift in market activity. Active listings across the GTA have increased by 76% year-over-year, significantly expanding housing options for buyers. However, the number of sales has dropped by 27% compared to last year, signaling a slowdown in transaction activity. When compared to February 2022, sales are now less than half of what they were at the market’s height, underscoring the major changes in buyer sentiment.
The average price of a home in the GTA declined by 2% year-over-year, reflecting a market adjusting to increased supply and tempered demand. Interestingly, Toronto proper has shown resilience, with prices rising 1.4% from last year, highlighting the continued appeal of homes within the city’s core.
Key Market Indicators
One of the most important metrics in real estate is months of inventory, which measures how long it would take for all active listings to sell at the current pace of transactions. In the GTA, this number has climbed to 4.84 months, meaning that only one in every five properties listed for sale is currently selling. By contrast, last year at this time, one in every two properties was selling. This shift reflects a more balanced, or even slightly buyer-favored, market compared to previous years.
Another notable change is the average days on market, which now stands at 32 days. This represents an increase from previous years when homes were moving much faster. With increased inventory and more cautious buyers, homes are taking longer to sell, and bidding wars are becoming less common outside of the most sought-after neighborhoods.
Segment Breakdown: Detached, Semi-Detached, Townhouses, and Condos
Detached Homes
Detached home sales remain steady, but pricing has softened. The average sale price for a detached home in Toronto sits at $1.63 million, down from the February 2022 peak of nearly $1.95 million. Buyers seeking move-in-ready properties in desirable neighborhoods continue to show interest, though the days of rapid price increases appear to be behind us.
Semi-Detached Homes
Semi-detached homes continue to be one of the most competitive segments in the Toronto market, with limited inventory driving demand. The average price for a semi-detached property is now just under $1.28 million, representing a decline of about $200,000 since March 2022. Despite this, well-located semis are still receiving strong interest, often selling within a few days of being listed.
Townhouses
The townhouse segment is experiencing tightening inventory, with fewer available units compared to other property types. Townhouse prices currently average $878,000, down about $110,000 from their peak in mid-2022. This segment remains attractive to buyers seeking more space than a condo without the price tag of a detached home.
Condominiums
Condos have been a major point of discussion, with nearly 5,000 active listings on the market in Toronto alone. Despite the high inventory levels, condo sales have increased slightly from the previous month, showing signs of stabilization. A striking statistic is that 57% of all condo sales in February were for two-bedroom units, demonstrating strong demand for more spacious layouts. The benchmark price for condos sits at $674,000, down from $800,000 in April 2022.
Economic Factors Impacting the Market
Interest rates remain a key driver of real estate activity. The Bank of Canada’s next rate announcement on March 12 will be closely watched, as a rate cut could stimulate buyer demand. Historically, falling rates have encouraged more activity, but some buyers are choosing to wait, anticipating better mortgage terms in the coming months.
Additionally, economic uncertainty, including global trade concerns and inflationary pressures, has introduced caution among buyers. The combination of higher inventory and a slower pace of sales suggests that buyers are being more selective, looking for value before making a purchase decision.
Looking Ahead: Spring Market Expectations
As the market transitions into the spring season, traditionally one of the busiest times of the year, several factors will influence trends:
- Inventory levels are expected to increase further, providing buyers with more options.
- Pricing may remain stable, with potential for growth in highly desirable neighborhoods.
- Interest rates will play a pivotal role in buyer confidence and overall transaction volume.
- Single-family homes in prime areas may continue to see strong demand, while less competitive properties might experience longer listing times.
The Toronto real estate market has undergone significant changes since its peak in 2022. While sales are down and inventory is rising, the city’s housing market remains dynamic, with pockets of strong activity, particularly in the semi-detached and two-bedroom condo segments.
For buyers, this shift represents an opportunity to explore more choices without the pressure of bidding wars. For sellers, proper pricing and presentation are crucial in an environment where competition has increased.
The coming months will provide further clarity on where the market is heading, with interest rates and economic conditions playing key roles in shaping demand. As always, staying informed on the latest data and market trends is essential for making well-informed real estate decisions in 2025.
