Home sales in the Greater Toronto Area (GTA) experienced a significant decline of 23.1% in March 2025, marking a notable shift in the region's real estate market. According to the Toronto Regional Real Estate Board (TRREB), there were 5,011 homes sold last month, a drop from the 6,519 sales recorded in March 2024. Additionally, there was a slight decrease of 2.4% in sales compared to February when adjusted for seasonal fluctuations.

As the market grapples with these declining sales figures, an influx of new listings has been observed. The TRREB reported that 17,263 new properties were listed in the GTA during March, reflecting a substantial increase of 28.6% compared to the same month last year. Furthermore, the overall inventory of homes available for sale rose by 9.5%, totaling 13,633 properties in the region.

According to Jason Mercer, the chief information officer of TRREB, many potential homebuyers are adopting a "wait-and-see" approach, influenced by the economic uncertainties stemming from ongoing trade issues and the context of a federal election campaign in Canada. These factors have led to a cautious outlook among households considering entering the housing market.

Amidst this shifting landscape, average selling prices for homes have also taken a hit. The average selling price decreased by 2.5% year-over-year, settling at $1,093,254. The composite benchmark price, which is meant to represent the typical home, saw a more significant decline of 3.8% compared to the previous year. This reduction in prices is in line with the increasing supply of homes and waning buyer interest.

Looking ahead, the TRREB anticipates that market activity will improve as consumers regain confidence in the economy and their job security. The stabilization of these factors is essential for encouraging potential buyers to re-engage with the housing market.

In summary, the Greater Toronto Area's real estate market is currently facing challenges with decreased home sales and falling prices, despite a rise in new listings. The situation is further complicated by economic uncertainties, leading many buyers to take a cautious approach. However, there is hope for a rebound in market activity as confidence in the economy begins to recover.