The Greater Toronto Area real estate market is showing promising signs for prospective buyers as homeownership becomes more affordable compared to last year. Both borrowing costs and home prices have declined over the past 12 months, creating a more favorable environment for those looking to enter the market or make a move.
Key Market Indicators for March 2025
The latest data from the Toronto Regional Real Estate Board (TRREB) reveals several significant trends:
- Average selling price: $1,093,254 (down 2.5% from March 2024)
- Total sales: 5,011 (down 23.1% year-over-year)
- New listings: 17,263 (up 28.6% compared to last year)
- MLSยฎ Home Price Index Composite benchmark down 3.8% year-over-year
- Sales-to-new-listings ratio: 29% (compared to 49% last year)
These statistics clearly point to a shift toward a buyer’s market, with increased inventory giving purchasers more options and negotiating leverage.
Market Breakdown by Housing Type
Different housing segments are showing varied price points:
| Housing Type | Average Price |
|---|---|
| Detached | $1,439,268 |
| Semi-detached | $1,111,791 |
| Townhouse | $908,169 |
| Condo Apartment | $682,019 |
Expert Insights
TRREB President Elechia Barry-Sproule notes: “Homeownership has become more affordable over the past 12 months, and we expect further rate cuts this spring. Buyers will also benefit from increased choice, giving them greater negotiating power. Once consumers feel confident in the economy and their job security, home buying activity should improve.”
The current market conditions appear to be influenced by several factors, as TRREB’s Chief Information Officer Jason Mercer explains: “Given the current trade uncertainty and the upcoming federal election, many households are likely taking a wait-and-see approach to home buying. If trade issues are solved or public policy choices help mitigate the impact of tariffs, home sales will likely increase.”
Looking at the broader economic picture, TRREB CEO John DiMichele adds: “While the policy debate heading into the federal election has rightly been focused on our cross-border trade relationship, it has also been important to see that the federal parties continue to view housing as a key priority based on the various election platforms. This is in line with recent polling suggesting access to housing options that are affordable remains top-of-mind for all Canadians. Building this housing will be a key economic driver moving forward.”
What This Means for Buyers
If you’re considering purchasing a home, the current market presents several advantages:
- More affordable prices compared to last year
- Greater selection with substantially more listings
- Improved negotiating position in a buyer’s market
- Anticipated rate cuts that could further enhance affordability
Now may be an opportune time to explore your options, particularly if you’ve been waiting for market conditions to shift in favor of buyers.
What This Means for Sellers
For those looking to sell, the current market requires:
- Realistic pricing strategies that acknowledge the year-over-year decline
- Strategic marketing to stand out among increased competition
- Careful timing to capitalize on expected improvements in market activity
- Expert guidance to navigate changing conditions
While the market currently favors buyers, well-presented properties in desirable locations still attract interest, especially as anticipated rate cuts make financing more accessible.
Looking Ahead
The combination of improved affordability, expected interest rate cuts, and housing’s prominence in election platforms suggests that the market may see increased activity once economic confidence returns. This transitional period presents unique opportunities for both buyers and sellers who are prepared to act strategically.
How We Can Help
Whether you’re looking to buy, sell, or simply understand how these market trends affect your property’s value, our team is here to provide personalized guidance. We can help you navigate these evolving conditions with expert advice tailored to your specific situation.
Contact us today to discuss your real estate goals and how the current market conditions might present opportunities for you.
-The TanTeam Editorial
