Toronto Real Estate Market Update- February 2025
As a pioneer real estate brokerage, at AECORN Realty, we’re closely monitoring the Toronto real estate market dynamics. The first two months of 2025 have presented interesting trends, particularly in light of potential shifts in Canada-US tariff policies. Let's delve into the data and uncover what this means for you.
Key Market Trends
Sales Activity
January and February 2025 saw a decrease in sales compared to the same period in 2024. This aligns with the typical seasonal slowdown we expect in the winter months. However, the decrease is less pronounced than what we observed in previous years, suggesting underlying market resilience. In January 2025, sales were down approximately 15% from January 2024, while February 2025 saw a 10% decrease from February 2024. These figures are less dramatic than the 20% and 18% drops experienced in January and February of 2024 compared to their 2023 counterparts.
Inventory Levels
New listings also declined in January and February, mirroring the trend in sales. This is contributing to a tighter market with reduced inventory, which could put upward pressure on prices in the coming months. Specifically, new listings were down 12% in January and 8% in February compared to the same months in 2024.
Average Sale Price
Despite the sales dip, the average sale price in Toronto remains relatively stable. This indicates continued demand, even in the face of potential economic headwinds. The average sale price in February 2025 was $1,050,000, only a slight decrease from $1,070,000 in February 2024.
Canada-US Tariff Impact
The evolving Canada-US tariff landscape is a significant factor to consider. While the exact impact remains uncertain, potential scenarios include:
Increased Costs
Tariffs on imported goods could lead to higher costs for consumers and businesses, potentially dampening economic growth and affecting affordability in the real estate market.
Reduced Investment
Uncertainty surrounding trade policies could discourage foreign investment in Toronto real estate, impacting demand and price growth.
Market Volatility
Fluctuations in trade relations could contribute to market volatility, making it more challenging for buyers and sellers to navigate the market.
Actionable Insights for Clients
Buyers
If you're considering buying, be prepared for a competitive market with limited inventory. Get pre-approved for a mortgage and work with an experienced agent to stay informed about new listings. Consider expanding your search to include surrounding areas or be flexible with your desired property type to increase your options.
Sellers
With reduced inventory, it's a good time to consider listing your property if you're motivated to sell. However, be prepared to price competitively and showcase your property's unique features to attract buyers. Consider investing in professional staging or photography to make your listing stand out.
Investors
Carefully assess the potential impact of tariff developments on your investment strategy. Diversification and a long-term perspective remain crucial in navigating market uncertainties. Consider consulting with a financial advisor to develop a tailored investment plan that accounts for potential risks and opportunities.
Looking Ahead
The Toronto real estate market is dynamic and influenced by various factors. At AECORN we're committed to providing you with data-driven insights and expert guidance to help you make informed decisions. Stay tuned for our upcoming market updates and don't hesitate to reach out to our team for personalized advice.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute professional real estate advice. Please consult with an AECORN agent for personalized guidance tailored to your specific situation.
