February’s real estate numbers reveal a market that continues to favor buyers, with inventory remaining high across the GTA. Sales activity has slowed compared to last year, providing buyers with increased negotiating power. However, affordability remains the primary challenge, as elevated mortgage rates continue to impact purchasing decisions.

Affordability and Market Hesitation

While demand for homeownership remains strong, many prospective buyers are pausing their searches due to the current interest rate environment. The good news? Rates are expected to decline in the coming months, which could help reinvigorate market activity.

At the same time, broader economic uncertainty—including concerns over trade with the U.S.—has led some buyers to adopt a wait-and-see approach. If economic confidence improves and borrowing costs ease, we may see a more active market later this year.

Key Market Stats for February:

• 4,037 sales (down 27.4% from last year)
• 12,066 new listings (up 5.4%)
• Average price: $1,084,547 (down 2.2%)

Looking Ahead

With shifting policies at both the provincial and federal levels, the future direction of the market will largely depend on government leadership in addressing housing affordability and economic stability. For buyers and sellers alike, staying informed and prepared will be essential in navigating the evolving landscape of Toronto real estate.

If you’re considering a move or have questions about the market, feel free to reach out—staying ahead of the trends can make all the difference.