The Toronto real estate market in 2025 presents a mixed landscape, with different dynamics depending on property type and location. While detached and semi-detached homes remain a seller’s market, the condo and townhouse sectors are shifting into buyer-friendly territory due to increased inventory.
Market Trends: Buyer’s vs. Seller’s Market
Detached & Semi-Detached Homes: A Seller’s Market
- Prices for detached homes have remained stable, with a 1% year-over-year increase.
- Semi-detached home sales are up 25.7%, driven by changes in mortgage policies increasing borrowing capacity.
- Low inventory and high demand keep competition strong, giving sellers leverage to negotiate favorable deals.
Condo & Townhouse Market: A Buyer’s Market
- The condo market has experienced an oversupply, with inventory levels rising beyond six months, making it easier for buyers to negotiate better prices.
- Townhouses have seen similar trends, with increased listings leading to lower prices and more room for negotiation.
- Sales-to-new-listings ratio has dropped below 50%, indicating more homes entering the market than being sold.
Overall Market Conditions
- New listings have surged by 48.6%, while transactions have declined 7.9%, increasing competition among sellers.
- The absorption rate (how quickly homes are selling) is around 4.36 months, signaling a shift towards a balanced market overall, but with key differences depending on property type.
Best Neighborhoods for Buyers and Sellers
Best Areas for Buyers:
- Eglinton West – An up-and-coming area with affordable homes, especially townhouses and condos priced under $800K.
- Scarborough – More supply and lower price growth, making it a prime target for first-time buyers.
- North York – A growing number of condo developments have increased availability, offering better deals for buyers.
Best Areas for Sellers:
- The Annex – High demand for luxury homes, keeping prices stable and sellers in control.
- Leaside – Limited supply and desirable schools make this area a competitive seller’s market.
- High Park – Detached homes in this neighborhood continue to attract buyers, sustaining price stability.
Factors Influencing the 2025 Market
- Interest Rates
- While mortgage rates have eased slightly from their peak, they remain high compared to the 2010–2020 average, affecting affordability.
- Economic Uncertainty
- Canada’s revised immigration policies and economic shifts, including U.S.-Canada trade tensions, add uncertainty to market stability.
- New Housing Supply
- Increased housing supply in certain segments, especially condos, is cooling price growth and shifting leverage to buyers.
Should You Buy or Sell in 2025?
- For Buyers: Now is an ideal time to negotiate in the condo and townhouse market. Detached home buyers may need to act quickly due to ongoing demand.
- For Sellers: If selling a detached or semi-detached home, conditions remain favorable. Condo sellers may need to price strategically to attract buyers.
Final Thoughts
The Toronto real estate market in 2025 is defined by a transition, with detached homes favoring sellers while condos and townhouses shift towards buyers. Understanding these trends and targeting the right neighborhoods can help both buyers and sellers make informed decisions in this evolving market.
Richard Wang 