Ah, Toronto real estate—always dramatic, never boring. If the market were a person, it’d be that friend who constantly changes their relationship status on Facebook. "It’s complicated," but we all keep refreshing to see what happens next.
So, what’s the latest in the Toronto real estate soap opera? The Toronto Regional Real Estate Board (TRREB) just dropped their Market Outlook and Year in Review report, and the main takeaway is this: 2025 is looking like a year of moderate growth. Not exactly the fireworks show some were hoping for, but also not the doomsday scenario others were predicting. In short, the market is set to rise at about the same pace as inflation. Which means if you’re waiting for prices to nosedive, you might be waiting a while.
One of the biggest factors shaping the market this year? Interest rates. As borrowing costs come down, more buyers are expected to get off the sidelines and into the game. TRREB predicts a 12.4% increase in home sales this year. Great news for sellers, right? Well, yes and no. More homes are hitting the market too, meaning buyers will have more options and—gasp!—might actually have some negotiating power.
But before you start high-fiving, there’s a potential wrench in the machine: economic uncertainty. Trade disruptions could shake consumer confidence, and if people start feeling nervous about their jobs, they might put those big home-buying decisions on hold. So, while lower mortgage rates are definitely a plus, they won’t be a magic fix.
TRREB’s forecast suggests single-family homes will see stronger price growth compared to condos. Why? Because while there’s plenty of condo supply, the missing-middle housing crisis continues. Townhomes, duplexes, and low-rise multi-units remain as elusive as a short line at Tim Hortons during morning rush. Until we see more of these types of homes being built, demand for detached houses will likely stay high—and prices will reflect that.
January set the tone for what’s ahead. Listings surged compared to last year—up by nearly 50% year-over-year. That’s a lot of fresh inventory hitting the market, giving buyers more choice than they’ve had in a while. Even with all that, prices are still edging up. So, if you were hoping to lowball your way into homeownership, don’t get too cocky.
Overall, 2025 is shaping up to be a year of cautious optimism. The market isn’t soaring, but it’s also not crashing. It’s just… doing its thing. And for Toronto real estate, that’s about as stable as it gets.
Here are the most recent Toronto numbers...
So, what’s the latest in the Toronto real estate soap opera? The Toronto Regional Real Estate Board (TRREB) just dropped their Market Outlook and Year in Review report, and the main takeaway is this: 2025 is looking like a year of moderate growth. Not exactly the fireworks show some were hoping for, but also not the doomsday scenario others were predicting. In short, the market is set to rise at about the same pace as inflation. Which means if you’re waiting for prices to nosedive, you might be waiting a while.
More Buyers, More Listings, More "Let’s See What Happens"
One of the biggest factors shaping the market this year? Interest rates. As borrowing costs come down, more buyers are expected to get off the sidelines and into the game. TRREB predicts a 12.4% increase in home sales this year. Great news for sellers, right? Well, yes and no. More homes are hitting the market too, meaning buyers will have more options and—gasp!—might actually have some negotiating power.
But before you start high-fiving, there’s a potential wrench in the machine: economic uncertainty. Trade disruptions could shake consumer confidence, and if people start feeling nervous about their jobs, they might put those big home-buying decisions on hold. So, while lower mortgage rates are definitely a plus, they won’t be a magic fix.
Houses vs. Condos: The 2025 Showdown
TRREB’s forecast suggests single-family homes will see stronger price growth compared to condos. Why? Because while there’s plenty of condo supply, the missing-middle housing crisis continues. Townhomes, duplexes, and low-rise multi-units remain as elusive as a short line at Tim Hortons during morning rush. Until we see more of these types of homes being built, demand for detached houses will likely stay high—and prices will reflect that.
More Listings, But Prices Still Creeping Up
January set the tone for what’s ahead. Listings surged compared to last year—up by nearly 50% year-over-year. That’s a lot of fresh inventory hitting the market, giving buyers more choice than they’ve had in a while. Even with all that, prices are still edging up. So, if you were hoping to lowball your way into homeownership, don’t get too cocky.
What This Means for You
- If you’re a buyer: More listings mean more options, but don’t expect a fire sale. Get your financing sorted now so you can move quickly when you find the right place.
- If you’re a seller: Pricing strategically is key. The days of "list it, then take a vacation while the bidding war handles itself" are over.
- If you’re an investor: Condos may take longer to appreciate, but single-family homes are still where the action is.
Overall, 2025 is shaping up to be a year of cautious optimism. The market isn’t soaring, but it’s also not crashing. It’s just… doing its thing. And for Toronto real estate, that’s about as stable as it gets.
Here are the most recent Toronto numbers...
