February 2025 GTA Real Estate Market Update: Sales Drop, Listings Surge

The Greater Toronto Area (GTA) real estate market experienced a dramatic shift in February 2025. Sales slowed considerably, while active listings surged, giving buyers more options and greater negotiating power. Meanwhile, average prices remained relatively stable, reflecting a more balanced market.

Let’s break down the key takeaways from February’s GTA Real estate market performance and what it means for buyers and sellers moving forward.

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Sales Plummet by 27.4% Year-Over-Year in the GTA Real Estate Market

One of the most striking figures from February 2025 is the significant decline in sales activity. Total GTA home sales dropped by 27.4% compared to February 2024, falling from 5,562 transactions to just 4,037.

This slowdown was seen across all housing types:
    •    Detached homes: Sales fell by 31.1%
    •    Semi-detached homes: Down 22.3%
    •    Townhouses: Dropped 30.6%
    •    Condos: Declined 22.0%

The drop in sales suggests that higher borrowing costs, economic uncertainty, and shifting buyer sentiment are playing a role in cooling demand.

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Listings Surge by 76% – More Inventory for Buyers in the GTA Real Estate Market

While sales dropped, the number of active listings skyrocketed by 76%, climbing from 11,097 in February 2024 to 19,536 this year. New listings also increased by 5.4%, signaling that more sellers are entering the market despite slower demand.

This surge in available inventory is great news for buyers, as it means more choice and less competition. It also shifts the market dynamic, making it harder for sellers to command multiple offers or drive-up bidding wars like in previous years.

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Home Prices See a Modest Decline in the GTA Real Estate Market

Despite lower sales volume, home prices held relatively steady. The average price of a home in the GTA dipped by just 2.2%, from $1,109,450 in February 2024 to $1,084,547 in February 2025.

Here’s a breakdown of price trends by housing type:
    •    Detached Homes: Prices remained flat (+0.2%), averaging $1,445,879
    •    Semi-Detached Homes: Prices dipped 4.0% to $1,079,996
    •    Townhouses: Down 2.3%, with an average price of $911,483
    •    Condos: Declined 1.3% to $688,055

While price drops weren’t dramatic, the combination of increased supply and slowing demand suggests that sellers may need to adjust their pricing expectations in the coming months.

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Homes Taking Longer to Sell in the GTA Real Estate Market

Another key indicator of the market shift is the increase in Days on Market (DOM):
• Average DOM increased to 28 days (+12%)
• Properties that required price adjustments took an average of 43 days to sell (+16.2%)

This means homes are taking longer to sell, and buyers have more leverage when negotiating prices. For sellers, this highlights the importance of pricing competitively and staging their properties effectively to attract interest.

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What This Means for Buyers and Sellers in the GTA Real Estate Market

For Buyers:

More inventory means greater selection and less competition.
Prices are stabilizing, reducing the urgency to rush into a purchase.
You may have more negotiating power on price and conditions.

For Sellers:

Be prepared for longer selling times.
Pricing aggressively is key to attracting buyers.
Staging and marketing strategies matter more than ever.

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Looking Ahead: Where is the Market Headed in the GTA Real Estate Market?

With rising inventory and declining sales, the GTA real estate market appears to be shifting towards a more balanced or even buyer-friendly environment. While prices have remained relatively stable, further downward pressure could emerge if sales continue to slow.

Key factors that could shape the spring market include:
    •    Interest rates: If rates remain high, demand may stay subdued.
    •    Economic conditions: Job market stability and inflation trends will influence buyer confidence.
    •    Government policies: Any changes in housing regulations or mortgage rules could impact affordability.

As we move into the spring, buyers and sellers alike should stay informed and work with experienced professionals to navigate the evolving market.

For expert insights on home value, market trends, selling strategies, staging advice, negotiating tips and real estate videos, visit LifestyleVideos.com to browse properties, real estate videos, neighbourhoods insights, real estate market trends, and connect with local agents.