Is the Spring Market Starting Early This Year?

As we enter February 2025, the Greater Toronto Area (GTA) real estate market is showing early signs of a spring surge. With increasing buyer interest, rising inventory, and stable mortgage rates, many are wondering if the spring market is beginning ahead of schedule this year. Here’s what you need to know about the early activity and what it means for buyers and sellers.

Early Market Trends

1. Increased Buyer Interest

Traditionally, the spring market picks up in March and April, but this year, February has already seen an uptick in showings and inquiries. Buyers who were previously waiting on the sidelines are now actively searching, driven by the anticipation of further price increases and favorable mortgage rates.

2. More Listings Hitting the Market

Sellers are recognizing the early demand and listing their properties sooner than usual. New listings in early February have increased by 9% compared to the same period last year, giving buyers more choices and reducing competition.

3. Stable Mortgage Rates Supporting Activity

The Bank of Canada’s decision to maintain its overnight lending rate at 4.5% has contributed to a steady lending environment. Mortgage rates, while still higher than pre-pandemic levels, have remained stable, allowing more buyers to move forward with their purchases confidently.

4. Condos and Townhomes Leading the Way

With affordability top of mind, townhomes and condos in prime locations are seeing the strongest demand. First-time buyers and investors are especially active in this segment, taking advantage of available inventory before prices potentially rise in the coming months.

Key Market Insights

1. Stronger Open House Turnouts

Real estate agents are reporting higher-than-usual attendance at open houses, signaling strong interest among buyers who want to get ahead of the anticipated spring rush.

2. Price Growth Remains Moderate

While demand is rising, price increases remain moderate, with an average year-over-year growth of 3.8%. This suggests a balanced market where both buyers and sellers can benefit.

3. Rental Market Still Competitive

The GTA rental market remains tight, with increasing demand from young professionals and newcomers. Rental prices have risen by 5% compared to last year, pushing some renters to explore homeownership options instead.

What This Means Moving Forward

• An Early Start to the Spring Market: If this trend continues, March and April could see even higher levels of activity than usual.

• More Competition for Buyers: Those looking to purchase should act early to avoid bidding wars later in the season.

• A Great Time for Sellers: Listing sooner rather than later could mean taking advantage of the early surge in demand.

Final Thoughts

February 2025 is shaping up to be an unusually active month in the GTA real estate market. If you’re thinking about buying or selling, now may be the time to act before competition intensifies.

For expert guidance on navigating the evolving market, reach out to Ana Bastas Realty. Let’s make the most of these early opportunities!