As we move further into 2025, Toronto’s real estate market continues to show resilience, despite ongoing economic uncertainties, which I realize is a massive understatement.

The good news is that the average price for a home in Toronto is up by 1-2% compared to January 2024. That’s largely led by the single-family home sector where there are still a lot of multiple offers happening, especially on homes that are modern and renovated. Those are always the ones that sell the fastest and for the most money.

The one number that jumps out at me from TRREB is the how many new listings were recorded: 12,392 across the GTA, over 48% more new listings than we saw in January, 2024. A caveat: there’s no way to track how many of those are genuinely new listings. Some may have been terminated before the holidays and re-listed in January. One statistic that is tracked on properties that have sold: The average number of days a listing was on the market was 39, the average number of days a property was on the market was 57, so clearly, there’s been some re-listing happening.

At least it shows some optimism on the point of Sellers, and if the average property is taking 57 days to sell, we could see an uptick in sales when the March numbers are released in April.

These numbers are from before the Bank of Canada reduced the interest rate on January 29, so we’ll have to wait and see if that decision affects February sales. The next rate announcement is on March 12. I think the BoC will hold rates steady, but again, it’s impossible to predict.

So how is this reflected in the real world?

There are over 5,600 condos currently on the market. One trend we’re seeing is that if a condo seller even receives an offer, it’s significantly under asking. Like sometimes, six figures less.

While this can be insulting, in a busier market the offer can just be ignored, but today my recommendation is to negotiate. Often Buyers are just putting out feelers to see what the lay of the land is on the part of a Seller. Also, half the battle these days is just getting a Buyer to submit an offer so it’s best to keep the conversation going instead of just outright refusing an offer. If you, as a Seller, don’t like the offer you receive, counter it with one you would accept. Never let the ball die in your own court, I always say.

My advice is always for Sellers to swallow their feelings and sign an offer back. If you don’t have another offer, there’s no risk in doing so. Somebody may put in a low offer to test the waters and you never know what they’re really prepared to offer until you counter. Articles like this also don’t help – some people sense desperation in the market and are trying to take advantage of an opportunity.

One major unknown is how (or if) what’s happening in the US will affect the housing market.

Should the tariffs come through, homes in need of renovations will be affected because costs such as appliances and fixtures will be affected. There are still people who want to renovate, but tariffs will narrow the market of interested buyers and they of course will not want to take on the extra cost.

With more listings hitting the market and Buyers being more cautious, strategic pricing and negotiation are more important than ever. Whether you're buying or selling, staying informed and adaptable is key in this evolving market. If you're unsure how to navigate these shifting dynamics, let’s connect—I’d be happy to help you make sense of the numbers and create a strategy that works for you.

We are officially in February, which is significant for a number of reasons. One, Valentine’s Day is around the corner. Two, Family Day means most of us get a day off. Three, it’s my birthday month which I, for one, am very excited about. The days are getting longer too, which is also a bonus!

Scroll down for a few noteworthy items...

To start, how many times have you tried to book a reservation at a favourite spot, only to find out the restaurant was closed? One local artist has found a way to keep the memory of some lost spots alive, by making miniatures!

Also below, there’s an article on some homeowner tax incentives and romantic restaurant options for Valentine’s Day.

Lastly, the Bank of Canada reduced the key interest rate again, which is great for anybody holding a variable rate mortgage, and also good news if you’re looking to make a move this spring!

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This month, I’m discussing both the real estate market and a potential increase in property taxes.

If you’re interested in the specifics of the market, you can see the stats here.

There were more sales than I expected to see, perhaps prompted by a drop in interest rates. If there was anything surprising, it’s that there wasn’t an even further decrease in condo prices. Judging by the amount of interest (or lack thereof) in the condos currently on the market, I’d have expected that owners who really needed to sell would be more accepting about the current state of the market and be willing to negotiate.

So far in January, I’ve seen a ton of new listings, but I don’t think we’ll see a huge number of sales until we’re further into the spring market, like March or April. But it’s so hard to make predictions, not knowing the fallout from what’s happening in the US, not to mention potential elections here.

There are always opportunities in the market, it just depends on what you see as an opportunity. There are a number of condos available for sale that have been sitting for a while. If you’re an investor with a lot of cash to put down, there are deals to be had.

If you’re curious about what’s happening in your neighbourhood, send me a message.

The other news that will directly impact all homeowners is the proposed property tax increase coming for 2025, which works out to a total of 6.9%. There is an actual tax increase of 5.4% and a city building levy of 1.5%.

It sounds like a lot, but keep in mind that the taxes are calculated on assessments from 2016. If the city kept the tax rate the same but homeowners were taxed on the 2024 value of their home, people would be in shock.

To put it into dollars and cents, if your home was worth $1M in 2016, the proposed increase (city council will vote in February) would be $388. Annually.

There is a program for seniors who earn a low income (and may have been living in their home since the 50s) to apply for a tax grant. Hopefully the majority of Toronto homeowners can find an extra dollar a day to add to our property taxes.

The bottom line is that yes, property taxes have gone up by 24% over the last three years, but It’s about time. We’ve had the luxury of super low taxes and, although everyone wants to dump on Olivia Chow because the increases are happening during her tenure, I think we can blame past administrations that let things get to this point. And still, we have a very low taxation rate. For example, someone living in Ottawa would be paying almost $12,000 in taxes on a million dollar home, compared to $7,153 in Toronto.

Nobody wants to pay more tax than they have to, but I am ok with the idea of paying more because the city is suffering. The only other option is for the province to fund more, but that would mean it has more control of our city, which is something we definitely don’t want. Let’s just hope that city council uses the funds wisely and we see improvements.

There was significantly more movement in November’s real estate market than last year and the first half of December was quite active, but the signs of the holiday slowdown are definitely taking hold. Fewer properties are  coming to market and there are fewer showings on the properties that are currently available. That being said, I have just listed a cute one bedroom in the Annex!

What’s not uncommon for this time of year is that it isn’t just the new listings that are selling. What I often see at the end of a traditionally busy real estate season is that there is also an uptick in the sales of properties that have been sitting on the market for months. In my neighbourhood, one home sold that had been for sale since June! One reason for the action could definitely be attributed to the Bank of Canada rate cut in October and consumers were expecting another in mid-December. Turns out they were right!

Of course, who isn’t happy with the latest announcement from the BoC (a .50% rate reduction)? I think it will definitely help propel the market forward well into 2025, but I’m not confident it’s going to light a huge fire under people’s butts to take action during late December. Even with new mortgage rules coming into effect, I think the holidays will override the immediacy of the market taking off.

I do think we could see the spring market begin sooner than usual. I’m already meeting with homeowners to discuss what they’re going to do in the spring, so that’s a positive sign.

There’s another rate announcement due on January 29th, and if it’s a cut, or even a hold, that should give some confidence to hesitant buyers that things are settling down.

On the flip side, the other thing to consider is the incoming regime in the U.S. As much as the stock market has been doing really well, there’s a lot of talk about it being another bubble, not to mention concern about how the tariffs will affect us, along with the weakening dollar. There are still a lot of unanswered questions until Trump gets into power. Expect the next 4 years to be a bumpy ride!!

Although average home prices are actually lower than they were in 2021 (according to TRREB), the cost of living has gone up significantly and if the U.S. comes through with tariffs as threatened, affordability could get worse. So low interest rates alone won’t be enough to get the market going again.

So when is the right time to buy?

Some colleagues will always telling people that NOW is the time to buy regardless of market conditions, but with this market, they probably have a point.

If someone buys now, they won’t be closing for 60 to 90 days, which would be the end of March. There will be two more rate announcements between now and then. If rates go down, buyers get the benefit of that. It’s unlikely rates will go back up so soon, if anything, they’ll stay consistent.

I’m frequently being asked what I think will happen in 2025 and the bottom line is that it’s impossible to predict. There are lots of little things happening to encourage movement in the housing market. No single change is going to have a big impact, but at some point, we’ll reach critical mass and then we’ll see action when people feel confident enough to move forward.

I still feel like there’s restraint to the market, some hesitation, and people are just sitting on the sidelines waiting to see what’s going to happen.

If you’re curious about what’s happening in the market or are curious about what’s happening on your street, please get in touch!

The holidays will be here before you know it, as will 2025! In the meantime, there’s a tonne of happenings in the city to enjoy — in addition to holiday parties and spending time with friends and family!

Top of my list this year is STACKT where, currently, they have a winter wonderland complete with a 100-foot-long light tunnel! I suspect it's perfect for Instagramming! And speaking of light, we’re all dealing with a lack of it these days. You’ll find a great piece below with some pro tips on how to maximize the light in your home.

Also below are three listings that you don't want to miss... if you're running out of Christmas ideas maybe one of these properties would make a great stocking stuffer !?!

Toronto's real estate market is heating up, or at least it was in November! Sales surged 40% from last year. The market tends to slow in December but with the prospect of even lower interest rates expected in the New Year, buyer activity has ramped up as prices hold steady. December could still bring surprises though. There's a Bank of Canada rate announcement on the 11th and new mortgage rules being implemented on the 15th—typically a quiet month, but perhaps not this year!

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