Affordability Rises, Sales Decline: What the Toronto Real Estate Market March 2025 Is Telling Us
- Seventy Seven Park
- Apr 9
- 3 min read
What’s Happening in the Toronto Real Estate Market – March 2025
In March 2025, the Greater Toronto Area (GTA) real estate market found itself in a rare moment of contradiction: conditions are more affordable than they’ve been in a year, yet home sales continue to decline.
According to the latest report from the Toronto Regional Real Estate Board (TRREB), the average selling price across all home types in the GTA dropped to $1,093,254, down 2.5% from March 2024. The MLS® Home Price Index Composite Benchmark was also down 3.8% year-over-year.
While this dip in prices—and marginally lower mortgage rates—offers more manageable monthly payments, it hasn’t translated to increased buyer activity. In fact, home sales were down 23.1% year-over-year, with just 5,011 homes sold through TRREB’s MLS® System compared to 6,519 in March 2024.
Why Sales Are Slowing
TRREB’s leadership attributes this pause to macroeconomic uncertainty. “Given the current trade uncertainty and the upcoming federal election, many households are likely taking a wait-and-see approach to home buying,” said Jason Mercer, TRREB’s Chief Market Analyst. “Home buyers need to feel their employment situation is solid before committing to monthly mortgage payments over the long term.”
Despite recent gains in employment and modest GDP growth (2.6% in Q4 2024), economic anxiety—especially surrounding cross-border trade policy—continues to temper buyer confidence.
Listings Surge, Buyer Leverage Grows
Interestingly, while sales declined, new listings jumped 28.6% year-over-year. A total of 17,263 properties hit the market in March, giving buyers a wider range of options than they’ve had in previous years.
This surge in supply is reshaping the market dynamic. The Months of Inventory (MOI) ratio is rising, with both average Days on Market (20 days) and Property Days on Market (29 days) up significantly compared to last year.
In short: buyers have time, options, and negotiating power. Sellers, meanwhile, need to adjust expectations and work with agents to position their listings competitively in a market that’s favouring patience.
🔍 Housing Type Trends
Here’s a snapshot of price shifts by property type (YoY from March 2024):
Detached Homes: Avg. price $1,439,268 | ↓ 1.8%
Semi-Detached: Avg. price $1,137,997 | ↓ 1.3%
Townhomes: Avg. price $908,169 | ↓ 3.5%
Condos: Avg. price $882,019 | ↓ 2.6%
Notably, the condo apartment segment saw the sharpest year-over-year decline in sales, down more than 27% in the 905 and 21.6% in the 416.
Financing Still a Factor
While affordability is improving, borrowing remains expensive. TRREB reported the Bank of Canada Overnight Rate at 2.8%, with mortgage rates ranging from 6.49% to 6.79% across standard terms. However, there’s growing optimism that rate cuts may begin this spring, potentially spurring buyer movement.
The Federal Lens
Housing remains a hot-button topic heading into the federal election. As TRREB CEO John DiMichele noted, “The federal parties continue to view housing as a key priority... Building this housing will be a key economic driver moving forward.” Recent polling reflects public pressure for affordable housing policies and long-term supply planning.
Takeaways for Buyers & Sellers
Buyers: With growing supply and slight price relief, now may be a smart time to get pre-approved and shop with leverage—especially before anticipated rate cuts.
Sellers: Strategic pricing, timing, and presentation are essential. The market is active—but choosy.
Investors & Developers: Watch for longer listing times and consider the implications of rising inventory across key submarkets.
📩 Need help navigating this shift? Whether you’re buying, selling, or planning your next move—we’re here with data-backed advice and smart strategies.
Seventy Seven Park
Smart Real Estate. Smarter Strategies.
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