The Toronto real estate market experiences further softening in February, with new listings dropping sharply by 17.7 percent year-over-year to 10,705 properties. Home sales also decline modestly by 6.3 percent to 3,868 transactions compared to the previous year.
Sales and Inventory Trends
On a seasonally adjusted basis, both sales and listings decrease from January levels, with inventory falling at a faster pace than transactions. This imbalance signals subdued demand alongside a rapid pullback from sellers, who appear to be holding off amid uncertain conditions.
Price Declines Continue
Prices follow suit, with the MLS Home Price Index composite benchmark slipping 7.9 percent year-over-year. The average selling price falls 7.1 percent to $1,008,968, marking declines on both year-over-year and seasonally adjusted measures from January.
Expert Analysis on Market Dynamics
TRREB President Daniel Steinfeld notes substantial pent-up demand in the Greater Toronto Area. “Many would-be homebuyers are waiting for selling prices to level off before moving into the market,” he states. “If new listings continue to trend lower through the spring, competition between homebuyers will increase, supporting home prices and a recovery in sales.”
TRREB Chief Information Officer Jason Mercer highlights over 100,000 potential buyers on the sidelines. He explains that these buyers await price stability and clearer economic signals before entering the market.
TRREB Chief Executive Officer John DiMichele calls for policy action to boost housing supply. “The long-term sustainability of the GTA housing market depends upon the industry’s ability to bridge the gap between condominium apartments and traditional single-family homes,” DiMichele says. He urges federal and provincial governments to support increased ‘missing middle’ home construction through targeted measures.
