The Greater Toronto Area’s (GTA) real estate market is currently facing some significant challenges, with March 2025 marking the lowest home sales for the month in over two decades.
Spring usually brings a boost in housing activity, but this year, it’s witnessed a slow market with many prospective buyers putting a hold on their homeownership dreams ahead of the federal election and the ongoing trade war with the U.S.
According to the Toronto Regional Real Estate Board’s (TRREB) March report, many buyers have adopted a “wait-and-see approach,” which has translated into slower market activity. However, amid these challenges, the report also revealed a silver lining for would-be homeowners.
The report indicates that homeownership in the GTA became more affordable in March 2025 compared to the previous year. On average, both borrowing costs and home prices declined over the past year, which made monthly payments more manageable for households looking to purchase property in the region.
“Homeownership has become more affordable over the past 12 months, and we expect further rate cuts this spring. Buyers will also benefit from increased choice, giving them greater negotiating power. Once consumers feel confident in the economy and their job security, home buying activity should improve,” said TRREB President Elechia Barry-Sproule.
Despite improved affordability, the market remains sluggish. In March 2025, sales plummeted year over year by 23 per cent, with just 5,011 sales. At the same time, new listings surged nearly 29 per cent, surpassing 17,000 listings.
Source: TRREB.
“Given the current trade uncertainty and the upcoming federal election, many households are likely taking a wait-and-see approach to home buying. If trade issues are solved or public policy choices help mitigate the impact of tariffs, home sales will likely increase. Home buyers need to feel their employment situation is solid before committing to monthly mortgage payments over the long term,” said TRREB’s Chief Information Officer Jason Mercer.
The MLS Home Price Index Composite benchmark was down by 3.8 per cent year-over-year in March 2025. The average selling price, at $1,093,254, was down by two per cent compared to March 2024.
“While the policy debate heading into the federal election has rightly been focused on our cross-border trade relationship, it has also been important to see that the federal parties continue to view housing as a key priority based on the various election platforms,” said TRREB CEO John DiMichele.
“This is in line with recent polling suggesting access to housing options that are affordable remains top-of-mind for all Canadians. Building this housing will be a key economic driver moving forward.”
As affordability improves, experts suggest that the region’s real estate market may begin to show signs of recovery. Still, it looks like many potential buyers in the GTA will be holding off until economic and political uncertainties are resolved.
