Market Update 2025

Market Update - April 2025

Spring has finally settled in, and it's been a welcome change to enjoy some warmer weather. Home sales have also started to heat up, with April showing an uptick in activity compared to March. However, total residential transactions in the Greater Toronto Area (GTA) were still down compared to the same time last year, as many potential buyers remain on the sidelines, waiting for lower borrowing costs and more economic certainty.

Many households are also keeping an eye on the evolution of Canada’s trade relationship with the United States following the recent federal election. A positive shift in this relationship could boost consumer confidence, leading to increased market activity in a more affordable, better-supplied housing market.

According to the Toronto Regional Real Estate Board (TRREB), there were 5,601 home sales reported in April, down 23.3% from April 2024. The average selling price was $1,107,463, representing a 4.1% decrease year-over-year. TRREB’s Chief Market Analyst, Jason Mercer, noted that inventory levels remained elevated throughout April, providing buyers with more options and increased leverage during negotiations. This, in turn, contributed to lower average prices across several neighbourhoods.

The resale condominium market experienced a decline, with sales volume down nearly 30% and average prices falling by 6.9% compared to April last year. Looking ahead, the GTA is expected to see a record number of new condos delivered in 2025, which will further boost supply and likely place additional downward pressure on prices. In referencing the new construction market, due to current buyer and investor hesitancy, many developers have paused new mid and high-rise projects. As a result, we will face significantly tighter market conditions in three to five years, once the current supply pipeline is absorbed.

Please remember, I'm just a call or text away for any of your real estate questions or needs. I'm always happy to help and look forward to connecting with you soon!

Apr. 16th, 2025 - BOC Announcement

The Bank of Canada held its key interest rate at 2.75% today, citing rising uncertainty driven by recent U.S. trade policy shifts. 

While inflation is easing, global and domestic economic signals remain mixed.

For real estate, this could mean a shift in buyer behaviour, mortgage rate trends, and overall market activity. 

Whether you're thinking about entering the market or planning your next step, staying ahead of these changes is key.

Have questions about how this may affect your plans? Let’s connect for a personalized market update.

Market Update - March 2025

Homeownership in the Greater Toronto Area (GTA) became more affordable in March 2025 compared to the same time last year. On average, both borrowing costs and home prices have declined over the past year, making monthly mortgage payments more manageable for buyers. Additional interest rate cuts are anticipated this spring, which may further improve affordability.

Buyers are also benefiting from increased inventory, giving them more options and greater negotiating power. As consumer confidence in the economy and job security strengthens, we can expect to see a boost in home-buying activity.

According to Jason Mercer, Chief Market Analyst at the Toronto Regional Real Estate Board (TRREB), ongoing trade uncertainty and the approaching federal election may be prompting many households to take a cautious, wait-and-see approach. However, if trade tensions ease or public policy effectively mitigates the impact of tariffs, we could see a rebound in home sales. Ultimately, buyers need to feel confident in their employment stability before committing to long-term mortgage payments.

In March 2025, TRREB reported 5,011 home sales—a 23.1% decrease compared to March 2024. The average selling price fell by 2.5% year-over-year to $1,093,254. At the same time, active listings rose by 9.4% across the GTA, increasing supply and continuing to put downward pressure on prices.

The condominium market has also continued to soften, with a record number of new units being delivered this year. Condo sales volume declined by nearly 25%, while prices dropped a modest 2.6%. This correction is presenting attractive opportunities in the resale condo market.
If you have any questions about the market or need guidance with your real estate goals, I’m always here to help. Don’t hesitate to reach out, I look forward to connecting with you soon!

Mar. 12th, 2025 - BOC Announcement

The Bank of Canada's recent rate cut to 2.75% is expected to have a significant impact on the housing market.

This change comes as the Bank of Canada responds to economic uncertainty caused by rising trade tensions and new U.S. tariffs.

As conditions shift, an early spring market could emerge, presenting opportunities for both buyers and sellers.

Staying informed is key in this evolving market!

Market Update - February 2025

Time is flying by as we enter March, and it's refreshing to see the weather warming up after all the snow in February. The media has been filled with political chatter, including the recent provincial election and the implementation of tariffs on goods entering the U.S. from Canada, Mexico, and China. As a result of both the challenging weather and political noise, home sales in February were down compared to the same period last year, while inventory of available homes remained high.

In February 2025, there were 4,037 home sales, down 27.4% from February 2024. Seasonally adjusted, February sales also saw a month-over-month decline compared to January 2025. The average selling price dropped to $1,084,547, a 2.2% decrease from the same month last year.

TRREB's Chief Market Analyst Jason Mercer noted that home buyers seem to be losing confidence in the economy. Uncertainty surrounding our trade relationship with the United States is likely causing some households to adopt a "wait-and-see" approach to purchasing a home. However, if trade uncertainties ease and borrowing costs continue to decrease, we could see a significant rebound in home sales during the second half of the year.

While uncertainty often presents challenges, it also brings opportunity. With some buyers and sellers choosing to stay on the sidelines, those who remain active in the market will find more opportunities. Despite listing volumes increasing by over 20%, prices have only slightly softened, highlighting the resilience of the Greater Toronto Area's real estate market. We anticipate a decline in borrowing costs in the coming months, improving affordability and opening up a window of opportunity for those who stay engaged in the market's activity.

For any real estate inquiries, I'm always here to help. I look forward to connecting with you soon.

Market Update - January 2025

January has already come to an end and now we are more than halfway through Winter, where is the time going?  The Toronto Regional Real Estate Board (TRREB) recently released its Year in Review report which revealed that a well-supplied housing market will keep average annual home price growth at the rate of inflation, with the average selling price increasing moderately in the Greater Toronto Area (GTA) over the course of 2025.  
TRREB is forecasting a total of 76,000 home sales in 2025, up by 12.4% over 2024. Lower borrowing costs coupled with ample supply will improve affordability and prompt more buyers to move into the market.  The average selling price is predicted to reach $1,147,000, up by 2.6% over 2024, for all home types combined. Price growth will be stronger for single-family homes compared to the well-supplied condo apartment market.

January reported 3,847 home sales through TRREB’s MLS System down by 7.9% compared to the same period last year.  Seasonally adjusted, January sales were up month-over month compared to December 2024.  The average selling price, at $1,040,994, was up by 1.5% compared to January 2024.  

The months of inventory, a key metric used to gauge the pace of home sales across all property types, was reported at nearly 4.5 months. If no new homes, of any kind, were listed on the MLS, the current inventory would be completely sold out in that time. With 4.5 months of inventory, the market is approaching the threshold of a Buyers' Market, meaning buyers would have more options, which could put pressure on sellers to price their homes more competitively.

The condominium market in January softened with the number of sales down 13% and prices down only 1.7% across the GTA.  Prices will remain relatively flat in the condominium market throughout 2025 as a record number of newly completed units are delivered across the GTA.  
As your Realtor, I am always here to address any of your real estate questions.  I look forward to connecting with you soon.


 

January 29th, 2025 - BOC Announcement

The Bank of Canada has lowered its key interest rate to 3.0%, marking a significant shift in the economic landscape. 

This change could impact mortgage rates, buyer demand, and overall market activity in the months ahead.

Whether you're looking to purchase a home, sell your property, or invest in real estate, staying informed about interest rate trends is key to making confident decisions. 

Want to discuss what this means for your real estate plans? Let’s connect.

2025 Bank of Canada Announcement Schedule

Mark your calendars!

These BOC announcements can significantly influence mortgage rates, borrowing costs, and financial strategies.

Staying informed is key when working to maximize your results in the real estate market.

Follow if you want to stay updated and stay ahead of the market!

Happy New Year 2025