Toronto’s real estate market in February 2025 experienced a slowdown. Transaction volumes were down by 22% compared to the previous year, and year-to-date transactions for 2025 are 31% lower than the 5-year (2021-2025) average. Despite the decline in transaction activity, prices showed resilience, with average prices increasing by more than 1% compared to February 2024.
Higher volume of listings and low number of transactions resulted in 5 months of inventory. Breaking this down, there are 3.7 months of inventory for freehold properties and 6 months of condominium inventory. Recent newsletters highlighted how the lengthy time to resolve cases at the Landlord and Tenant Board combined with affordability challenges have nearly wiped out the investor market which was a significant condo buying segment.
While interest rates began to decline in mid-2024, fostering cautious optimism and leading to month-on-month average price increases from August to October 2024, the market has since adopted a “wait-and-see” stance. The introduction of tariffs by the incoming US Administration, announced in November 2024 and initially slated to take effect in February 2025, created economic and political uncertainty. The tariffs’ implementation has been delayed to March, and it remains unclear when, or to fully what extent, they will take effect.
In this climate of uncertainty, the market has become stagnant. Homeowners who are looking to downsize or upsize are hesitant to make a move, preferring to sell before purchasing. This dynamic contributed to the low transaction volume yet resilient prices in February. Meanwhile, first-time homebuyers have remained on the sidelines, as both prospective buyers and current homeowners express concerns about the potential impacts of a trade war and the possibility of job losses.
Yesterday, the Bank of Canada reduced the policy rate for the seventh consecutive time since June 2024, providing some relief to the market.
As for the spring market, buckle in and get ready for bumpy ride.
Shen Shoots the Breeze
Amidst the trade war between Canada and the United States, recent statistics show a noticeable decline in cross-border travel. The number of Canadians visiting the U.S. has decreased, reflecting a broader trend of travelers exercising caution in response to potential costs and economic implications.
In light of these changes, many are now looking inward, eager to explore the diverse and vibrant offerings within our own province. Last February, my friends treated me to a unique birthday day trip, one that was full of surprises. We followed a Guess Where Trip “GWT” itinerary, a Canadian-based company known for curating memorable experiences that encourage you to try, see, and do something completely new. This service highlights off-the-beaten-path locations and supports local businesses along the way.
What’s exciting about GWT is that you can customize your journey based on your preferences—whether you’re looking for a family-friendly outing, seasonal adventures, or a specific region to explore. Once you place an order, the company will send you either a pdf immediately or a fun physical package in the mail containing four envelopes: one to open before the trip and one for each stop along the way.
We met in Guelph, just off the 401, and set off toward Waterloo. Only one of my friends knew the entire itinerary (she had to make a dinner reservation at our last stop), so we were in for a day full of surprises. While I won’t spoil all the details, we spent the day exploring charming small towns and hidden gems just west of the GTA.
So, grab your family or a small group of friends, hop in the car, and let the road lead you to new adventures. For a more structured experience, try a GWT package—and leave your passport at home!