The Toronto Regional Real Estate Board (TRREB) has released its January 2025 market statistics, offering valuable insights into the shifting landscape of GTA real estate. As we move forward, addressing housing supply and affordability remains crucial to fostering a balanced and sustainable housing market.
GTA REALTORS® reported 3,847 home sales through TRREB’s MLS® System in January 2025, marking a 7.9% decline compared to January 2024. However, new listings surged to 12,392, representing a 48.6% year-over-year increase, providing buyers with more options in the market.
Despite the dip in sales, the MLS® Home Price Index Composite benchmark saw a 0.44% annual increase, and the average selling price rose to $1,040,994, reflecting a 1.5% growth from the same period last year. Seasonally adjusted figures indicate a month-over-month increase in sales compared to December 2024, suggesting gradual market stabilization.
Housing Supply and Affordability Challenges
TRREB President Elechia Barry-Sproule emphasized the importance of prioritizing housing diversity and supply to ensure accessibility for individuals and families across the GTA. Expanding missing-middle housing, including townhomes, duplexes, and low-rise multi-unit buildings, is vital to providing more attainable homeownership options. Additionally, purpose-built rentals remain a key component in addressing rental market affordability.
Barriers to Development & Policy Considerations
TRREB CEO John DiMichele highlighted that traffic congestion and affordability are interconnected challenges that require integrated solutions. He pointed out that high development charges, taxes, and administrative hurdles continue to hinder progress in expanding housing supply, exacerbating affordability concerns across the region.
What This Means for Buyers and Sellers
Buyers: Increased inventory means more choices, but prices remain steady. If interest rates decrease, competition could rise in the coming months.
Sellers: While sales volumes are slightly down, home values are holding, making it a reasonable time to sell if priced competitively.
Investors: Purpose-built rental developments and missing-middle housing projects could present long-term opportunities amid ongoing demand.
Looking Ahead: A Call for Collaboration
As we navigate 2025, collaboration between policymakers, developers, and real estate professionals will be essential in addressing Toronto’s housing challenges. Integrated approaches to development, taxation, and affordability will help shape a market that meets the needs of a growing population.
Thinking of buying or selling in the GTA? Stay informed with the latest market trends and expert insights. Connect with Ria Bharti
416-568-5548
www.riabharti.com