Dear Clients,
February 2025 Canadian Real Estate Market Performance
The Toronto real estate market started 2025 with renewed activity as sidelined buyers re-entered the market, increasing showings and demand, particularly in the freehold sector. While overall home sales in January were down 7.9% year-over-year, new listings surged by 48.6%, providing buyers with more options. The average home price rose 1.5% to $1,040,994, reflecting steady demand despite economic uncertainty.
The freehold market remains highly competitive due to limited supply, while the condo sector faces shifting dynamics, with more investor-owned units coming up for sale. Rental inventory is also increasing, easing pressure on rents. Looking ahead, the spring market will depend on mortgage rates, economic factors, and inventory levels, making it crucial for buyers and sellers to stay informed and act strategically.
For Buyers: With new listings up nearly 50%, there are more choices and better opportunities to enter the market. Lower borrowing costs could improve affordability, but economic uncertainty may impact pricing and inventory trends. Buyers should act strategically, especially in the freehold and condo segments, where market shifts are creating potential deals.
For Sellers: Early 2025 has shown strong momentum, particularly in the freehold market, where demand remains high due to low supply. However, with more listings hitting the market, competition is increasing, making smart pricing and marketing essential. Sellers should take advantage of current buyer interest before potential economic shifts impact confidence.
Enjoy reading our Market Report February 2025
DASH Property Management
