Although buying a home in the Greater Toronto Area (GTA) is more affordable now than a year ago, home sales are down by 23.1 per cent, reflecting potential homebuyers’ lack of trust in the current economic climate, according to new data.
The Toronto Regional Real Estate Board (TRREB) March Market Watch published on Thursday shows that the average home price in the GTA is down by two per cent, with the average home price now at $1,093,254 compared to $1,120,984 last March.
“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,” TRREB President Elechia Barry-Sproule said in a statement.
New listings saw a substantial increase and home ownership became more affordable in the GTA this March. Dive into the latest GTA housing trends in TRREB’s Market Watch Report. Explore more: https://t.co/Z8vEVfoIKR pic.twitter.com/d36hQUE0WN
— Toronto Regional Real Estate Board (@TheReal_TRREB) April 3, 2025
But the lower prices don’t seem to be impressing potential buyers, as sales last month were down significantly from 2024, with 5,011 transactions compared to 6,519 last year.
According to TRREB, the decline in home sales is a reflection of the current uncertain economic climate that drives homebuyers to a “wait-and-see” approach.
Canada is currently going through a period of market instability due to the U.S. President Donald Trump’s ever-changing tariffs that currently impose a 25-per cent tariff on all Canadian imports (which applies to goods not included in the Canada-U.S.-Mexico trade agreement) and auto imports, along with 10 per cent tariffs on energy.
Read More
TRREB also says the upcoming election on April 28 is causing homebuyers to wait on the sidelines.
“Given the current trade uncertainty and the upcoming federal election, many households are likely taking a wait-and-see approach to home buying,” TRREB’s Chief Information Officer Jason Mercer said in a statement.
Meanwhile, TRREB CEO John DiMichele said it is important for federal candidates to keep treating the housing market as a priority to ensure that house prices become more affordable.
“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,” he said.
“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.”
The report also revealed that there are more available options for those thinking of purchasing a home, with 17,263 new real estate listings, a 28.6 per cent increase compared to March 2024, and Mercer says that he expects home sales to go up again as Canada’s economic situation becomes more stable.
“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,” he added.
NOT ENOUGH SUPPORT FOR YOUNG BUYERS
The Ontario Home Buyers’ Association (OHBA) also published a report on Tuesday suggesting that current home prices and lack of support leaves young and middle-class homebuyers without options to afford purchasing a home.
The report reveals that the average price-to-income ratio in the province, including in the GTHA, Kitchener, Barrie, Guelph and Waterloo has more than doubled since 20 years ago, driving many families away from the market.
“The situation is unsustainable. In the GTA, people spend over 65 per cent of their monthly income on housing; buying a single-family detached home is a pipe dream,” OHBA Vice-President of Policy, Advocacy, and Relationships Kirstin Jensen said in a statement.
Since 2005, housing in Ontario has gone from “relatively affordable” to “completely unattainable,” as supported by the OHBA, which could also be driving less people to buying a house in the province.
“We need real solutions for Ontarians to be able to afford homes again, especially young people. This means cutting taxes like developing charges, streamlining approval processes at the municipal level and investing in infrastructure to support new homes. We need to get serious,” Jensen added.
