Home sales in the Greater Toronto Area took a hit in February, declining by more than one-quarter compared to the same time last year.
Despite this downturn, buyers still hold considerable negotiating power in the market. According to the Toronto Regional Real Estate Board (TRREB), a total of 4,037 homes were sold last month—a 27.4% drop from February 2024’s total of 5,562. On a seasonally adjusted basis, sales were also down 28.5% compared to January.
Many potential homebuyers remain eager to purchase, but high mortgage rates are keeping them on the sidelines. TRREB president Elechia Barry-Sproule noted that while demand is strong, affordability remains a pressing issue.
“Many households in the GTA are eager to purchase a home, but current mortgage rates make it difficult for the average household to comfortably afford monthly payments on a typical property,” Barry-Sproule stated in a press release.
While sales have slowed, new listings in the GTA increased by 5.4% to 12,066 properties in February. Total inventory surged by 76% year-over-year to 19,536 listings, creating a more favourable market for buyers.
Beyond interest rates, macroeconomic factors are influencing homebuyer confidence. TRREB chief market analyst Jason Mercer highlighted Canada’s strained trade relationship with the U.S. as a potential reason for buyer hesitancy.
“On top of lingering affordability concerns, homebuyers have arguably become less confident in the economy,” Mercer said. “If trade uncertainty is alleviated and borrowing costs continue to trend lower, we could see much stronger home sales activity in the second half of this year.”
With so much market uncertainty, many buyers and sellers are wondering whether they should wait for conditions to improve. Stay tuned for more news and feel free to contact me if you have any questions.