Toronto Real Estate Market Shifts - February Update

Toronto Central Real Estate Market – February 2025 Snapshot

The Toronto Central real estate market saw strong pricing stability in February, with the average sale price reaching $2.84M, indicating continued high-value transactions. Sales remained favorable as the ask-to-sell ratio stayed at 97%, meaning most homes sold close to their asking price.

However, sales volume declined, with 116 properties sold, a 21% drop from previous levels. This suggests a slowdown in transaction activity, possibly due to affordability concerns or changing buyer sentiment.

At the same time, active listings doubled to 763 (Y/Y), signaling growing inventory that could impact market dynamics in the coming months. Despite this, homes were still moving relatively fast, with the average days on the market at 22, slightly lower than the 24 days recorded at the same time last year (STLY).

Key Takeaway:

The market remains price-resilient, but fewer sales and rising inventory could hint at a shift in buyer behavior or upcoming market softening. Sellers may need to adjust pricing expectations in the months ahead, especially if inventory continues to grow.

Toronto West Real Estate Market – February 2025 Snapshot

The Toronto West market saw a mix of high pricing power and slowing sales activity, with increased inventory across all housing types.

Detached Homes: The average sale price remained strong at $1.51M, with sellers achieving 100% of asking price. However, sales volume took a significant hit, with only 126 homes sold, down 43% year-over-year. The days on market increased to 25 (from 21 STLY), signaling a potential cooling in demand. Meanwhile, inventory surged 127% Y/Y, which could lead to more price adjustments if demand doesn’t pick up.

Semi-Detached Homes: Semis outperformed other segments in pricing power, with an average sale price of $1.20M and an impressive 110% ask-to-sell ratio. However, sales dropped by 17% (48 homes sold), though the days on market decreased to 17 days (down from 24 STLY), indicating that well-priced homes still attract buyers. Inventory skyrocketed 156% Y/Y, a major increase that could shift market conditions if absorption slows.

Condos: The condo market remained the most affordable option, with an average sale price of $640K and a 98% ask-to-sell ratio. However, sales slowed 20% Y/Y (187 condos sold), and days on the market increased sharply to 43 days (vs. 31 STLY), reflecting buyer hesitation. Active listings rose 27% Y/Y, adding more supply to an already slower-moving market.

Key Takeaway:

Toronto West remains resilient in pricing, but rising inventory and declining sales suggest a shifting landscape. Detached homes face the most pressure with a large drop in sales and inventory buildup, while semi-detached homes still attract competitive offers. Condos, however, may experience longer selling times as buyers become more selective.

Toronto East Real Estate Market – February 2025 Analysis

The Toronto East housing market saw price resilience but declining sales activity in February. Rising inventory across all property types suggests a potential market shift, with buyers gaining more options and possibly more negotiating power in the coming months.

Detached Homes: Prices remained solid at $1.26M, with sellers achieving 105% of asking price. However, sales fell 16% (169 homes sold), and inventory surged 130% Y/Y. Homes still moved quickly, with 18 days on market (vs. 17 STLY), but rising supply could lead to softer pricing ahead.

Semi-Detached Homes: Sales dropped 25% (54 sold) despite an average price of $1.17M and a 108% ask-to-sell ratio. Days on market increased to 23 (vs. 18 STLY), and inventory jumped 115% Y/Y, indicating more supply and longer selling times.

Condos: The most affordable segment, averaging $600K, with a 99% ask-to-sell ratio. However, sales fell 37% (96 sold), and days on market increased to 31 (vs. 28 STLY). Inventory rose 49% Y/Y, suggesting slower absorption and potential price adjustments ahead.

Key Takeaway:

Prices remain firm, but declining sales and rising listings signal a shifting market. Detached and semi-detached homes still attract strong offers, but condos face longer selling times. Sellers should watch inventory trends and adjust pricing as needed.

Navigating Toronto East’s shifting market requires the right strategy. If you're thinking of selling, don't leave money on the table. Contact me today for a data-driven pricing strategy that ensures you sell at the best price in the shortest time!"

📩 Message me now to get a free market evaluation!