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Toronto & Etobicoke Real Estate Market Outlook for 2025

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Toronto & Etobicoke Real Estate Market Outlook for 2025

As we kick off the new year, it’s incredible to look back at how much the market has shifted over the past year. 2024 brought its share of challenges and opportunities, and now, all eyes are on what 2025 has in store for Toronto and Etobicoke real estate.

Curious about the latest trends and what to expect in the months ahead? Dive into this month’s market update for a full breakdown of January 2025 stats!

The latest Toronto Regional Real Estate Board’s Market Outlook and Year in Review report indicates that a strong housing supply is expected to keep home price growth in line with inflation in 2025. As a result, home prices in the Greater Toronto Area (GTA) are projected to see moderate increases over the year.
 
The average home price is currently $1,040,994, reflecting a 2.4% decrease from December. This price is now approximately $5,000 below its February 2021 level, a time when values were still rising toward the market peak of $1,334,544 in February 2022.
 
Interestingly, this price point has been seen twice before in recent years, both times in January 2023 and January 2024. On each previous occasion, values rebounded in the following months, suggesting this level could act as a potential floor for the market. However, if this support line fails to hold, price volatility is likely to follow.
While home values remain near multi-year lows, sellers have not been deterred. Newly active listings reached 12,392, bringing the total active inventory to 17,157 by the end of the month. This represents a 92% increase compared to the 10-year historical monthly average of 8,916.
 
Home sales did rise 14.5 % month-over-month to 3,847 transactions. However, on a yearly basis, sales remain 8% lower and are down over 17% compared to the 10-year monthly average.
 
As the market adjusts, various home segments continue to show different trends. The detached home segment across the GTA recorded a 1.5% monthly decline, bringing the average sale price to $1,377,430. The month saw 5,000 newly active listings, the highest January total since 2013. Detached home sales totaled 1,580, an 11% increase from December.
As January closes, the GTA real estate market remains in transition. While prices have softened, inventory levels are at historic highs, and buyer activity is showing some resilience. The coming months will be pivotal in determining whether this is a temporary reset or the beginning of a more prolonged adjustment.
 

Is the time right for you to buy?

The Bank of Canada’s rate cut to 3% on January 29, 2025, makes this year a great opportunity for buyers who’ve been waiting on the sidelines. That’s down from 5% just a year ago!
 
With high inventory levels and lower variable mortgage rates—now 2% lower than before—2025 is shaping up to be a prime time for move-up buyers. Lenders are competing aggressively making financing more accessible and your dream home may be closer than you think.
 
If you’ve been considering upgrading to a home that better suits your lifestyle, this could be your year. With strong market conditions and the opportunity to leverage the equity in your current home, now is the time to explore your options and make a smart move for the future.

What does this mean for you if you would like to sell?

With more buyers entering the market, competition for homes could heat up. Sellers should focus on pricing strategically and ensuring their home stands out to attract interest. Lower rates may drive demand, potentially sparking a market rebound. 

What This Means for You

With more buyers expected to enter the market in 2025, now is the time to strategize your next move. Whether you’re planning to buy, sell, or invest, staying informed about market trends will be key to making confident real estate decisions. Please let me know if you have any questions about your next move. I’m here to help!

There you have your Toronto & Etobicoke Real Estate Market Outlook for 2025.  Be sure to stay tuned for my update next month as we continue to track the shifts in the Toronto and Etobicoke real estate market.

In the meantime if you are looking for expert guidance? Let’s chat about your goals for 2025! 

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