The Toronto real estate market wrapped up 2024 with resilience and a touch of optimism. Buyers are exploring opportunities despite affordability challenges, while sellers are strategizing to capitalize on demand in specific segments. With market conditions evolving, here’s everything you need to know as we kick off 2025.

The Sales & Listings Rundown

Sales Hold Steady: December saw 3,359 homes sold across the GTA—a slight 2% dip from last year. Despite this, total sales for 2024 reached 67,610, marking a 2.6% improvement over 2023.
Inventory Update: Active listings climbed by 22% year-over-year, signaling more options for buyers but also indicating lingering caution among sellers.

Let’s Talk Prices

Detached Homes: Toronto’s detached homes averaged $1.6M, holding their value in competitive neighborhoods.
Condos: The condo market remains a buyer’s playground, with average prices at $703K, down 1% from last year. Central Toronto condos still see strong interest, particularly in areas offering a mix of affordability and lifestyle.

What’s Driving the Market?

Interest Rates: The Bank of Canada’s modest rate cuts in December are a positive sign, though the effects on fixed mortgage rates are gradual.
New Mortgage Rules: The insured mortgage cap increase to $1.5M and extended amortizations for first-time buyers are making homeownership more accessible.
Market Dynamics: Immigration and tight supply continue to uphold demand, but affordability challenges persist.

Neighbourhood Spotlight

Central Toronto:Detached and semi-detached homes are still in high demand, especially in premium neighbourhoods where buyers are willing to pay top dollar for renovated homes.
East Toronto: Areas like Riverdale and Leslieville are thriving, offering a sweet spot of charm, convenience, and affordability. Semis and townhomes remain hot commodities here.

Looking Ahead: What’s Next for 2025?

The market is expected to see steady growth throughout the year:
Price Growth: Average prices are anticipated to increase modestly, with home values showing resilience across most property types.
Sales Activity: Improved borrowing conditions and easing affordability pressures are likely to encourage more activity in the market.
Affordability Challenges: While some relief is on the horizon, household incomes will remain a key factor for buyers navigating today’s market. With household incomes needing to hit $150K+ to comfortably buy the average home.

The Bottom Line: Is Now the Time?

Whether you’re buying, selling, or just exploring your options, the Toronto market is ripe with opportunities. For buyers, strategic timing could be the key to unlocking affordability. For sellers, standing out with competitive pricing and presentation will be essential. View our full Market Report for more specific stats.

Let’s make 2025 your year in real estate! Contact The Richards Group today for a personalized market analysis and expert advice tailored to your goals.