If you’ve been waiting for the “right time” to buy in Toronto, 2025 might just be your moment.
After years of sellers holding the upper hand, the real estate landscape in Toronto has started to shift. More listings are hitting the market, prices are softening in certain segments, and buyers now have something we haven’t seen much of in the last decade—negotiating power.
Let’s break down what’s happening and how you can make the most of it.
Why It’s a Buyer’s Market Right Now
The easiest way to spot a buyer’s market is to look at the sales-to-new-listings ratio (SNLR)—the percentage of homes sold compared to the number of new listings. Anything below 40% generally favours buyers, and right now, Toronto is sitting comfortably in that range.
Here’s what’s driving the shift:
More Inventory to Choose From
Sellers who were holding off during the market slowdown are now listing their homes, giving buyers a wider selection.Slight Price Adjustments
Average sale prices are down about 2–3% compared to last year. While that might not sound dramatic, in a city where even a small percentage can mean tens of thousands of dollars, it’s a meaningful shift.Interest Rate Relief on the Horizon
Many economists predict rate cuts later in 2025, which could lower borrowing costs and make homeownership more attainable.
What’s Happening by Property Type
Not every segment of the market is behaving the same way:
Detached Homes – Prices are steady to slightly lower, with more room for negotiation.
Condos – Seeing the most noticeable dip in prices (~2%), thanks to an increase in supply.
Townhomes & Semi-Detached – Remaining competitive and holding value, especially in desirable neighbourhoods.
How Buyers Can Take Advantage
If you’re entering the market right now, here’s how to position yourself for success:
Shop Around – With more listings available, take your time to compare options.
Negotiate Strategically – Don’t be afraid to make an offer below asking, especially if the property has been sitting for a while.
Look at Condos for Value – They’re seeing the biggest price dips and may offer the best entry point into the market.
Stay Mortgage-Ready – Even in a buyer’s market, the best deals go to those who can move quickly with financing in place.
For Sellers in a Buyer’s Market
If you’re selling right now, it’s not all bad news—you just need to be strategic:
Price competitively from the start to attract attention.
Invest in staging and marketing to make your property stand out.
Be open to negotiation and flexible on terms like closing dates.
Final Thoughts
Toronto’s 2025 market offers a rare window of opportunity for buyers who’ve been sidelined by high prices and fierce competition in recent years. More inventory, softer prices, and the potential for lower interest rates make this a moment worth considering—if you’re prepared.
Whether you’re buying, selling, or just starting to plan, having the right strategy and guidance is key. If you’d like to discuss how this market shift could work in your favour, let’s connect.