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Market Report – January 2025
The Toronto real estate market kicked off 2025 with some action—more listings, a bit of price growth, and buyers slowly making moves as mortgage rates trend down. With the spring market on the horizon, things are warming up. Let’s break it all down.
The Sales & Listings Rundown
Sales Down, Listings Up: GTA REALTORS® reported 3,847 home sales in January—down 7.9% from last year. But here’s the twist: new listings surged 48.6%, giving buyers more options to pick from. It’s a different vibe from early 2024 when inventory was tight.
Price Check: The average home price hit $1,040,994, up 1.5% year-over-year. It’s a slow but steady climb, reflecting a market where buyers are still hesitant but not totally sitting out.
Let’s Talk Prices
Detached Homes: Prices are holding strong, with demand steady in sought-after neighbourhoods. Expect competition for renovated, well-priced homes.
Condos: The condo market? It’s flooded with options. Prices dipped 2.4% year-over-year, and more investors are choosing to rent rather than sell at a discount.
What’s Driving the Market?
Interest Rates: Borrowing costs are easing, but don’t expect rock-bottom rates. The Bank of Canada is cautiously trimming rates, but five-year fixed mortgages are still in the 4%+ range.
Supply & Demand: More homes are hitting the market, but not all are selling quickly. Buyers are taking their time, and sellers are holding firm on pricing.
New Condo Completions: Many pre-construction buyers are closing on units worth less than what they paid a few years ago. Some might walk away, creating buying opportunities for those in the market.
Neighbourhood Spotlight
East Toronto: A diverse and evolving market where character homes and modern builds are drawing interest. Buyers are weighing affordability against lifestyle perks, making competitively priced properties the ones to watch.
Downtown Condos: With inventory levels climbing, buyers have more options than ever. Larger, well-located units with strong amenities are still attracting interest, while some sellers are adjusting expectations in response to shifting demand.
Looking Ahead: What’s Next for 2025?
More Sales Activity: As mortgage rates drop, buyers will jump in, but affordability remains a hurdle.
Rental Market Shift: A record number of condos are hitting the rental market, cooling demand and keeping rents from skyrocketing.
The Bottom Line: Is Now the Time?
The market is shifting—more listings, more opportunity, and a bit of price growth. If you’re thinking about buying, selling, or investing, the key is strategy. Let’s make 2025 work for you.
Check out our Full Market Report with in depth Toronto statistics
