Home sales in the Greater Toronto Area fell by more than one-quarter in February compared with a year ago despite buyers maintaining “substantial” negotiating power.

The Toronto Regional Real Estate Board says 4,037 homes were sold last month, down 27.4 per cent compared with 5,562 in February 2024. Sales were down 28.5 per cent from January on a seasonally adjusted basis.

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The average selling price declined 2.2 per cent compared with a year earlier to $1,084,547, as the composite benchmark price, meant to represent the typical home, was down 1.8 per cent year-over-year.

Meanwhile, 12,066 properties were newly listed in the GTA last month, up 5.4 per cent compared with last year, as total inventory in the region soared 76 per cent to 19,536.

The board says an anticipated decline in borrowing costs in the coming months should improve affordability, as some buyers remain concerned over the current monthly payments on a typical property.

TRREB chief market analyst Jason Mercer says macroeconomic factors such as Canada’s imperiled trade relationship with the U.S. are also spooking would-be buyers who are taking “a wait-and-see attitude towards buying a home.”