Toronto’s housing market continued to struggle in February 2025, with home sales plunging more than 25% year over year. This decline is particularly stark given that 2024 was already a sluggish year for real estate. The key factor weighing on the market? Economic uncertainty fueled by the impact of Donald Trump’s tariffs on Canada. With volatile and unpredictable trade policies creating instability, many prospective buyers have opted to sit on the sidelines, waiting for a clearer economic outlook before making a major financial commitment.
At the same time, the number of homes and condos available for sale has surged by 50% compared to last year. New listings are far outpacing sales activity, leading to a growing supply of homes on the market. However, this hasn’t translated into major price corrections—at least not yet. Stubborn sellers are holding firm on their asking prices, resulting in only a modest 2% decline in home values compared to February 2024.
One area of the market that continues to lag behind is the condo sector, particularly small condos that are typically dominated by investors. Demand for these units has been considerably weaker compared to low-rise homes, as higher borrowing costs and shifting investor sentiment have led to a slowdown in activity. With a growing supply of available condos and fewer buyers in the market, this segment remains one of the softest in Toronto’s real estate landscape.
Despite the broader slowdown, not all segments of the market are struggling. The demand for well-priced, low-rise homes in the City of Toronto and Durham remains relatively strong. In fact, roughly 50% of sales in these areas are still selling for more than the list price, indicating that buyers remain willing to compete for desirable properties.
Overall, the Toronto housing market is facing a challenging start to 2025, with high inventory levels, falling sales, and economic uncertainty shaping buyer behavior. While sellers in certain pockets of the market are still seeing competitive offers, the broader trend points to a housing market that remains in flux, waiting for stability before a clearer direction emerges.
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By the Numbers: February 2025
The average price for a house in the Toronto area was $1,342,486 in February, down 1% from the same month last year. Last month's median house price was $1,152,000, down 4%from the same month last year.
House sales in February were down 29% over last year, while new house listings were up 13%. The number of houses available for sale at the end of the month, or active listings, was up 62% over last year.
The current balance between supply and demand is reflected in the MOI, which measures inventory relative to the number of sales each month. In February, the MOI for houses increased slightly to 4.4.
The average price for a condo in the Toronto Area was $710,831 in February, down 2% from the previous year. The median price for a condo in February was $632,000, down 4% from the previous year.
Condo sales in February were down 25% over last year, and new condo listings were up 14%. The number of active condo listings was up 50% from last year. The MOI increased to 6.4.
Browse detailed monthly statistics for February 2025 for the entire Toronto area market, including house, condo and regional breakdowns below.
Monthly Statistics
House Statistics
House sales (low-rise freehold detached, semi-detached, townhouse, etc.) in the Greater Toronto Area (GTA) in February 2025 were down 29% compared to the same month last year.
New house listings in February were up 13% compared to last year.
The number of houses available for sale (“active listings”) was up 62% in February compared to the same month last year.
The Months of Inventory ratio (MOI) looks at the number of homes available for sale in a given month divided by the number of homes sold in that month. It answers the following question: If no more homes came on the market for sale, how long would it take for all the existing homes on the market to sell, given the current level of demand? The higher the MOI, the cooler the market is. A balanced market (a market where prices are neither rising nor falling) is one where MOI is between four to six months. The lower the MOI, the more rapidly we would expect prices to rise.
While the current level of MOI gives us clues into how competitive the market is on-the-ground today, the direction it is moving in also gives us some clues into where the market February is heading.
The MOI for houses increased to 4.4 in February.
The share of houses selling for more than the owner’s list price increased to 38% in February.
The average price for a house in February 2025, $1,342,486, was down 1% from the same month last year.
The median house price in February was $1,152,000, down 4% over last year.
The median is calculated by ordering all the sale prices in a given month and then selecting the price at the midpoint of that list such that half of all home sales are above that price and half are below that price. Economists often prefer the median price over the average because it is less sensitive to big increases in the sale of high-end or low-end homes in a given month, which can skew the average price.
Condo Statistics
Condo (condominiums, including condo apartments, condo townhouses, etc.) sales in the Toronto area in February 2025 were down 25% compared to the same month last year.
New condo listings were up 14% in February over last year.
The number of condos available for sale at the end of the month, or active listings, was up 40% over last year.
Condo months of inventory increased to 6.4 MOI in February.
The share of condos selling for over the asking price increased to 18% in February.
The average price of a condo in February was $710,831, down 2% from last year. The median price was $632,000, down 4% from last year.
John Pasalis is President of Realosophy Realty. A specialist in real estate data analysis, John’s research focuses on unlocking micro trends in the Greater Toronto Area real estate market. His research has been utilized by the Bank of Canada, the Canadian Mortgage and Housing Corporation (CMHC) and the International Monetary Fund (IMF).
Have questions about your own moves in the Toronto area as a buyer, seller, investor or renter? Book a no-obligation consult with John and his team at a Realosophy here: https://www.movesmartly.com/meetjohn
