— We take our content seriously. This article was written by a real person at BREL.
The February 2025 stats are in, and there’s a clear pattern emerging in Toronto’s real estate market. The numbers confirm what we’ve been seeing on the ground: Toronto is experiencing a tale of two markets, with a divergence between property types and areas.
So, What Happened in February 2025?
February is always a weird month for real estate in Toronto – some years, it’s as busy as the spring market, while in other years, it’s dead. One of the big determinants is the weather – and this February, Mother Nature decided to dump 78 cm of snow on Toronto – more snow than all of last winter. It brought the city to a standstill.
February 2025 will also be remembered as one of Canada’s (and the world’s) most tumultuous months, both economically and politically. With Trump back in power, the Man Who Cried Tariffs has kept North American businesses on an unprecedented roller coaster. We also had the (pointless?) Ontario election and the federal Liberals are in the midst of a leadership change, too. With so much uncertainty, it’s no surprise that Toronto’s real estate market was stuck in ‘Pause’ mode.
The Big Picture: 416 vs 905
Let’s start with the headline numbers. Across the Greater Toronto Area, sales were down 27.4% compared to February 2024, with just 4,037 homes changing hands versus 5,607 last year. The average selling price dipped slightly to $1,084,547, down 2.2% from February 2024.
But when we compare the 416 (Toronto proper) to the 905 regions, we see steeper price declines and greater volume decreases in the suburbs.
| Region | Avg Price Feb 2025 | YoY Change | Sales Feb 2025 | YoY Change |
|---|---|---|---|---|
| City of Toronto (416) | $1,072,528 | -1.3% | 1,540 | -21.9% |
| 905 Regions | $1,093,307 | -3.2% | 2,497 | -30.7% |
Toronto’s Core, East and West
When we drill down into Toronto’s sub-regions, we see some variations:
| Area | Avg Price Feb 2025 | YoY Change | Sales Feb 2025 | YoY Change |
|---|---|---|---|---|
| Toronto West | $1,001,528 | -2.0% | 406 | -29.0% |
| Toronto Central | $1,155,470 | +2.3% | 775 | -13.7% |
| Toronto East | $1,036,183 | +0.8% | 359 | -28.3% |
Downtown Toronto (ie, Toronto Central) is showing the most resilience, with prices increasing despite the broader market slowdown.
Property Types: Condos vs Houses – A Market Divide
The divergence between property types tells another interesting story:
| Property Type | Avg Price Feb 2025 | YoY Change | Sales Feb 2025 | YoY Change |
|---|---|---|---|---|
| Detached | $1,445,879 | +0.2% | 1,706 | -31.1% |
| Semi-Detached | $1,079,996 | -4.0% | 356 | -22.3% |
| Townhouse | $991,066 | -4.2% | 404 | -30.6% |
| Condo Apt | $688,055 | -1.3% | 1,225 | -22.0% |
When I look at these stats as a REALTOR, I think:
- The first-time buyers are still nervous, despite lower interest rates, significant condo inventory and lower condo prices.
- The move-up buyers – who often focus on townhouses and semi-detached houses – are moving slowly, too.
The Condo Market: Under Pressure
Let’s take a deeper look at the condo market, which has been under pressure:
In Toronto Central, where condo living is dominant, the average condo apartment sold for $773,514 in February 2025, down 0.9% from a year earlier. New listings are up 27.6% year-over-year, while active listings have jumped 42.4%. This growing inventory is putting downward pressure on prices.
| Condo Area | Avg Price Feb 2025 | YoY Change | Sales | YoY Change | Active Listings | YoY Change |
|---|---|---|---|---|---|---|
| Toronto Central | $773,514 | -0.9% | 547 | -12.9% | 2,456 | +42.4% |
| Toronto West | $644,465 | -1.3% | 234 | -0.0% | 734 | -0.0% |
| Toronto East | $602,263 | -2.6% | 152 | -0.0% | 382 | +0.0% |
What’s interesting here is that while sales were down less dramatically in the condo market than in other segments, inventory continues to build, creating a more competitive environment for sellers. The months of inventory for condos now sits at 4.1 months in Toronto overall – technically still balanced, but trending toward a buyer’s market.
How Long Are Properties Taking to Sell?
One of the most telling metrics about market conditions is how long properties are sitting on the market before selling. To understand this chart, remember:
- The Avg Listing DOM represents the number of days a listing was on the market. It doesn’t take into account if a property was re-listed (for example, because of a price change).
- The Total Avg DOM is the true statistic you should care about, as it represents the total number of days a home was listed for sale before selling.
| Area/Property Type | Avg Listing DOM Feb 2025 | vs Feb 2024 | Total Avg DOM Feb 2025 | vs Feb 2024 |
|---|---|---|---|---|
| All TRREB Areas | 28 days | +3 days | 43 days | +6 days |
| City of Toronto | 30 days | +4 days | 45 days | +6 days |
| Detached Homes | 25 days | +3 days | 37 days | +1 day |
| Semi-Detached | 21 days | +1 day | 33 days | -7 days |
| Townhouses | 19 days | 0 days | 31 days | -5 days |
| Condos | 35 days | +3 days | 55 days | +12 days |
Properties are generally taking longer to sell compared to last year, with condos experiencing the most significant slowdown.
What we’re seeing on the ground matches these numbers: well-priced properties in desirable locations are still moving relatively quickly, while overpriced listings or those with significant compromises are sitting and often requiring price adjustments.
What’s Really Going On?
So what’s happening in the Toronto market right now? Several factors are at play:
- Interest Rate Impact: Despite the Bank of Canada’s recent rate cuts, mortgage rates remain high. This continues to limit buying power.
- Supply Growth: The months of inventory has increased to 3.8 across all TRREB areas (up from 2.4 a year ago), giving buyers more choice and negotiating power.
- Price Resilience: Despite slower sales, prices haven’t collapsed. This suggests sellers are holding firm rather than accepting significantly lower offers. This isn’t new for Toronto – we’ve seen sellers stand their ground on price in previous downturns, too.
- Market Segmentation: The luxury market and well-located properties in established neighbourhoods are performing better than entry-level and suburban properties.
- Trade Uncertainty: Uncertainty about Canada-US trade relations is creating hesitation among many buyers.
What Does This Mean For You?
For Sellers: The days of listing at any price and expecting multiple offers are behind us – at least for now. Proper prep and staging, strategic pricing, and effective marketing are essential. Properties that stand out from the competition are still selling, but often taking longer than in the past.
For Buyers: There’s less competition and more negotiating power than we’ve seen in years. With inventory levels rising, you can afford to be more selective. But don’t expect massive price drops – most sellers who don’t need to sell are choosing to wait rather than accept significantly reduced offers.
For Investors: The higher carrying costs due to interest rates are challenging the math on many investment properties. Cash flow has become king, and the days of counting primarily on appreciation may be on pause.
Looking Ahead
TRREB’s forecast for 2025 includes a projected 76,000 sales (up 12.4% over 2024) and an average price of $1,147,000 (up 2.6% over 2024). While we’re not seeing these numbers materialize yet, the forecast assumes interest rate cuts will continue throughout the year, potentially boosting market activity in the second half.
For now, we’re in a period of adjustment. The Toronto market is recalibrating after years of exceptional growth, followed by the interest rate shock of the past two years. This transition is creating both challenges and opportunities, depending on where you sit in the market.
One thing remains certain: real estate is and always will be local. City-wide or GTA-wide statistics can only tell you so much. For insights specific to your neighbourhood or building, get in touch- we’re always happy to provide a more targeted analysis.
