Toronto Real Estate Market Report ~ March 2025 | Affordability Improves Amid Economic Caution
Despite better financial conditions for homeownership, many buyers remain hesitant — waiting for greater clarity around the economy, job security, and policy direction before making long-term commitments.
As the Greater Toronto Area (GTA) shifts further into 2025, the real estate market continues to favour buyers.
Affordability has improved, thanks to a combination of lower home prices and reduced borrowing costs, but consumer confidence remains shaky, impacted by trade tensions and political uncertainty ahead of the federal election.
Despite better financial conditions for homeownership, many buyers remain hesitant — waiting for greater clarity around the economy, job security, and policy direction before making long-term commitments.
Market Snapshot: Fewer Sales, More Listings, Lower Prices
In March 2025, GTA REALTORS® reported 5,011 home sales, marking a 23.1% drop compared to March 2024.
Meanwhile, new listings surged by 28.6% to 17,263, and active listings nearly doubled, up 88.8% year-over-year to 23,462. This flood of inventory has further tilted the market in favour of buyers.
The average selling price dropped by 2.5% to $1,093,254, and the MLS® Home Price Index Composite benchmark saw a larger drop of 3.8% year-over-year.
On a seasonally adjusted basis, prices remained flat compared to February, but sales activity declined, indicating continued buyer caution.
Sales and Average Prices by Home Type
Detached Homes
- Sales: 1,867 (572 in 416, 1,295 in 905)
- Average Price: $1,439,268 ($1,723,489 in 416, $1,336,568 in 905)
- YoY Sales Change: -24.9% (-10.8% in 416, -28.9% in 905)
- YoY Price Change: -1.8% (+1.1% in 416, -4.3% in 905)
Semi-Detached Homes
- Sales: 485 (208 in 416, 277 in 905)
- Average Price: $1,111,791 ($1,337,498 in 416, $942,308 in 905)
- YoY Sales Change: -15.9% (-5.5% in 416, -22.4% in 905)
- YoY Price Change: -0.9% (+2.6% in 416, -6.6% in 905)
Townhouses
- Sales: 899 (185 in 416, 714 in 905)
- Average Price: $908,169 ($975,801 in 416, $890,645 in 905)
- YoY Sales Change: -23.2% (-21.6% in 416, -23.6% in 905)
- YoY Price Change: -3.5% (-2.4% in 416, -3.9% in 905)
Condo Apartments
- Sales: 1,404 (927 in 416, 477 in 905)
- Average Price: $682,019 ($716,460 in 416, $615,086 in 905)
- YoY Sales Change: -23.5% (-21.6% in 416, -27.0% in 905)
- YoY Price Change: -2.6% (-1.8% in 416, -5.0% in 905)
Year-Over-Year Summary
- Total Sales: 5,011 (2025) vs. 6,519 (2024), a 23.1% decline
- New Listings: 17,263 (2025) vs. 13,425 (2024), a 28.6% increase
- Active Listings: 23,462 (2025) vs. 12,429 (2024), an 88.8% increase
- Average Price: $1,093,254 (2025) vs. $1,120,984 (2024), a 2.5% decrease
- Average LDOM: 24 days, up 20% from 20 days in 2024
- Average PDOM: 36 days, up 24.1% from 29 days in 2024
What’s Driving the Market?
🔹 Affordability is Improving
With borrowing costs down and home prices softening, monthly mortgage payments are more manageable than they were a year ago — especially for first-time buyers. Upcoming rate cuts this spring may fuel further activity, especially for buyers who've been watching from the sidelines.
🔹 Trade Tensions & Economic Uncertainty
Canada’s ongoing trade uncertainty with the U.S., combined with the lead-up to the federal election, is weighing on consumer sentiment. Households are hesitant to commit to a mortgage until they feel secure in their jobs and confident about the economy.
🔹 Policy Uncertainty & Housing Platforms
As housing remains a top issue in voter polling, the federal election is putting pressure on all parties to deliver bold housing policies. More clarity on affordability measures and housing supply strategies could spur market activity — but until then, many prospective buyers are adopting a wait-and-see approach.
What It Means for You
📉 If You're a Buyer:
You're in a strong position. With lots of listings and less competition, this is an opportunity to negotiate better prices and potentially lock in a lower mortgage rate before demand returns later in the year.
🏡 If You're a Seller:
Focus on pricing strategy and marketing. While detached homes in the 416 held up well, other segments are experiencing price softness. Sellers must be competitive and responsive to the realities of today’s cautious buyers.
📈 If You're an Investor:
With high supply and fewer buyers, some properties — especially in the condo segment — may be undervalued. Keep an eye on rate cuts and rising rental demand, which could make 2025 a good year for expanding your portfolio.
Looking Ahead
With affordability slowly improving and interest rates expected to drop, the second half of 2025 could mark a turning point in GTA real estate.
But for now, the market continues to reflect buyer hesitation, economic unease, and high inventory — conditions that create opportunities for those ready to act.
Have any questions about the market? Let me know in the comments below!
Rylie C.
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