Key Highlights
- Metro Toronto home values have fluctuated since 2021 and are now on a downward trend.
- Initial signs of recovery in late 2024 have reversed, with market conditions worsening.
- A multi-factor analysis classifies Metro Toronto as a moderate-risk real estate market.
- While mortgage rates have come down from their peak, they remain high compared to the 2010–2020 average, restricting buyer affordability.
- Economic uncertainty is increasing due to Canada’s revised migration policies and new tariffs from the Trump administration, which may further impact the market.
Home Price Overview
Best Cities Report
Metro Toronto, home to approximately 7.1 million people, ranks 23rd among the world’s top 100 cities.
Why Toronto Stands Out
- Cultural Diversity – One of the most multicultural cities globally, Toronto offers a rich blend of cultures, languages, and cuisines, creating a dynamic and inclusive atmosphere.
- Economic Opportunities – As a major economic hub with a strong job market across various industries, Toronto attracts professionals seeking career growth.
- High Quality of Life – Consistently ranked among the world’s most livable cities, Toronto is known for its safety, cleanliness, and high standard of living.
- Entertainment & Recreation – The city boasts world-class museums, art galleries, theaters, and a vibrant dining and nightlife scene, along with abundant parks and green spaces.
- Education – Home to renowned universities and colleges, Toronto is an excellent destination for higher education.
- Transportation – A well-developed public transit system makes navigating the city convenient and accessible.
With its strong economy, diverse culture, and exceptional quality of life, Toronto remains an attractive place to live for people of all backgrounds.
Toronto Real Estate Market Update
The Toronto real estate landscape is undergoing a significant shift, creating a complex environment for buyers and sellers alike.
Detached Homes: A Shifting Seller’s Market
Detached homes in Metro Toronto remain in a seller’s market, giving sellers some negotiating power. However, a surge in inventory is reshaping market conditions. The months of inventory have risen from 1.6 to 4.6—a staggering 188% year-over-year increase—providing buyers with significantly more options.
Townhouses & Condos: A Balanced Market Emerges
The Greater Toronto Area (GTA) townhouse and condo markets have moved into balanced territory, where neither buyers nor sellers hold a distinct advantage. This shift is largely driven by a surge in active listings alongside weakened buyer demand.
Analysts attribute part of this slowdown to growing economic uncertainty, including fears of a U.S.-Canada trade war. However, even before these trade tensions, a wave of new supply was already entering the market, making a softer spring in 2025 inevitable.
- Townhouse inventory has surged from 2.1 to 5.1 months—a 143% increase.
- Condo inventory has climbed from 3.3 to 6.2 months—an 88% rise.
A More Buyer-Friendly Market
The data reveals a clear trend: expanding housing supply is gradually shifting Toronto toward a more buyer-friendly market. For young professionals looking to enter the market, this presents new opportunities but also underscores the importance of staying informed on evolving conditions.
Richard Wang 