Toronto’s housing market is at a crossroads. With shifting demand, rising pressures, and unexpected trends emerging, what’s next for buyers, sellers, and investors?
Introduction
On Thin Ice
Market Report
February 2025
RARE’s Economic Research Department meticulously examines TREB’s monthly data releases, distilling them into an easily digestible and insightful format within our market report.
Key Developments
Toronto Metro’s housing market weakened in February, with sales falling to historically low levels despite a small monthly increase. Active inventory grew, and market conditions softened, pointing to potential price declines, though prices saw a slight monthly uptick. The rental market also weakened as supply increased, pushing rents further below 2022 levels. New construction sales hit another record low, while housing starts and completions lagged historical norms. Rising mortgage rates, higher unemployment, and increasing mortgage arrears added to affordability challenges, keeping market pressures high.
Toronto Metro Sales Weakened Despite Monthly Increase
Toronto Metro sales rose in February to 4,037 but declined significantly after seasonal adjustment, marking the weakest level for this month since at least 2006. This represented a 5% month-over-month increase, a 28% year-over-year decline, and a level 40% below the 10-year average. Sales typically rise between January and May.
The Number of New Listings Was Typical
New listings declined in February to 12,066, a 3% month-over-month decrease but 6% higher year-over-year, exceeding the 10-year average by 7%. New listings typically rise between January and May.