The Greater Toronto Area (GTA) real estate market is currently facing some major challenges, with the number of home sales in March 2025 being the lowest in over twenty years.

Images from the web suggest that spring usually brings a boom in real estate activity, but this year, the market has shown weakness. Many potential buyers have postponed their dream of homeownership ahead of the federal election and the ongoing trade war with the United States.

According to TRREB's report for March, many buyers have adopted a "wait-and-see" attitude, leading to a slowdown in market activity. However, amidst these challenges, the report also reveals a glimmer of hope for prospective homeowners.

The report shows that compared to the previous year, the cost of purchasing a home in the GTA decreased in March 2025. On average, borrowing costs and house prices have both fallen over the past year, making it more affordable for families in the region to cover their monthly mortgage payments.

Image from the web

TRREB President Elechia Barry-Sproule stated: "Over the past 12 months, the cost of purchasing a home has been decreasing. We anticipate further interest rate cuts this spring. Buyers will also benefit from more options, enhancing their bargaining power. Once consumers regain confidence in the economy and job security, home buying activities will improve."

Despite improved affordability, the market remains sluggish. In March 2025, sales fell by 23% year-over-year to just 5,011 units. Meanwhile, new listings surged nearly 29%, exceeding 17,000 units.

"Given the current trade uncertainties and the upcoming federal election, many families may adopt a wait-and-see approach regarding home purchases. If trade issues are resolved or public policy choices help mitigate the impact of tariffs, home sales could increase. Homebuyers need to feel secure in their employment before committing to long-term mortgage payments," said TRREB Chief Information Officer Jason Mercer.

In March 2025, the MLS Home Price Index composite benchmark fell 3.8% year-over-year. The average sale price was CAD 1,093,254, a 2% drop compared to March 2024.

TRREB CEO John DiMichele stated: "While the policy debate preceding the federal election rightly focuses on our cross-border trade relations, it is equally important that all federal parties continue to prioritize housing according to various party platforms."

"This aligns with recent poll results indicating that access to affordable housing remains the top priority for all Canadians. Building such housing will be a key driver of economic growth."

With increased affordability, experts believe the region's real estate market may begin to show signs of recovery. However, it appears that many potential buyers in the GTA will continue to wait for economic and political uncertainties to be resolved.

Reference link:

https://www.blogto.com/real-estate-toronto/2025/04/torontos-real-estate-market-major-trouble-amid-global-uncertainty/

Original article: https://www.toutiao.com/article/7493362349689078287/

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