Toronto’s housing market has hit another turning point. Home sales across the city and surrounding regions have taken a sharp dip, prompting a mix of concern, speculation, and strategic adjustments among buyers, sellers, and agents alike. While some may chalk it up to seasonal shifts, there are deeper forces at play.

As a Toronto-based brokerage, Justo keeps a close eye on these market changes. Let’s break down what’s really behind the recent drop in home sales, what it means for you, and how you can still come out ahead in a slower market.

What the Numbers Say

According to the Toronto Regional Real Estate Board (TRREB), home sales in the GTA dropped significantly over the past few months. February 2025 saw a 27% decline in sales compared to February 2024. New listings were also down, which signals a cooling market on both ends: fewer buyers and fewer sellers.

Detached homes and condos were hit hardest, especially in the 416 area. But the suburbs aren’t exempt. Peel, Durham, and York regions also experienced noticeable slowdowns.

Rising Interest Rates Continue to Bite

The Bank of Canada’s aggressive interest rate hikes over the past two years have had a clear effect. Higher borrowing costs have priced out many would-be buyers. Even those who can technically qualify for a mortgage are thinking twice, unsure whether rates will rise further or if home prices will drop even more.

Affordability has taken a serious hit. A modest rate increase can mean hundreds more per month in mortgage payments. For many, it’s the difference between moving forward and sitting tight.

Uncertainty Is the Real Driver

It’s not just about numbers. It’s about confidence. People make big decisions like buying or selling a home when they feel stable and secure. Right now, many feel uncertain—about the economy, inflation, interest rates, and what the future holds.

This wait-and-see attitude is stalling movement across the board. Sellers don’t want to list if they think they’ll get less than last year. Buyers are hesitant to make offers if they think prices could fall more.

The Market Is Rebalancing

While headlines focus on the drop in sales, this slowdown is part of a bigger shift. Toronto’s housing market has been overheated for years. Bidding wars, no-condition offers, and rapid price jumps became the norm. That pace wasn’t sustainable.

What we’re seeing now is a rebalancing. Prices are adjusting. Conditions are returning to normal. Homes are taking longer to sell, and buyers have more leverage. This isn’t a crash. It’s a correction—and one that may offer long-term benefits.

What This Means for Buyers

If you’re thinking of buying, this could be a good window of opportunity. Fewer bidding wars. More negotiating power. Time to actually think before making an offer.

At Justo, we help buyers make the most of this shift. Our cashback model means more money in your pocket at closing. For example, buying a $300,000 home could get you around $11,250 back. That’s money you can use for renovations, furniture, or just some breathing room after moving.

With less pressure and more incentives, this could be the most buyer-friendly market we’ve seen in years.

What This Means for Sellers

Selling in a slower market doesn’t mean settling for less—it just means being smarter. Pricing competitively and marketing aggressively are more important than ever.

That’s where Justo’s approach gives you an edge. We offer free staging consultations, 3D virtual tours, and targeted social media campaigns to make your listing stand out. Homes that show well and are priced right still sell—and often faster than expected.

Sellers also benefit from our fair commission structure. You keep more of your home’s value, instead of watching it disappear in fees.

Timing Still Matters

Yes, the market is slower. But real estate is always about timing. If you’re planning to move anyway—for work, family, or lifestyle reasons—trying to “time the market” perfectly can backfire.

Waiting for prices to rise again could take longer than expected. Meanwhile, interest rates might not come down as quickly as some hope. If you find the right home or the right buyer, that’s reason enough to act.

How to Move Forward with Confidence

The key in any market is being informed and prepared. That means:

• Getting pre-approved so you know exactly what you can afford.
• Understanding your neighbourhood so you have realistic expectations.
• Working with a brokerage that puts your interests first.

At Justo, we combine expert guidance with real financial value. Our transparent process, cashback incentives, and full-service support make buying or selling smarter—especially now.

We’re here to make sure you don’t just ride out this shift—you use it to your advantage.

Final Thoughts

Toronto’s housing market is cooling, but it’s not collapsing. The recent decline in home sales reflects broader economic pressures and shifting expectations, not a fundamental weakness.

If you’re clear on your goals and smart in your approach, this market still holds opportunity. And with the right partner, you can navigate it with confidence.

Whether you’re buying, selling, or just trying to understand your options, Justo is here to help. Let’s talk about what makes sense for you—now and in the future.

Get in Touch

Want to know what your home is worth? Curious about what kind of cashback you could get? Reach out today for a free consultation. No pressure, just honest advice from a team that knows Toronto real estate.

Because smart moves start with smart information. And that’s exactly what we deliver.