Posted on
May 15, 2025
by
Brian Elder
Some may find it a challenge to put a positive spin on Toronto’s real estate market right now, but as you’ll see, it’s not impossible.
According to the latest data from the Toronto Regional Real Estate Board, the number of new listings rose by 8%, while sales dropped by 23% compared to April 2024. Prices across the GTA finally saw a decline of around 4%. Given the recent election, I expected to see even more listings, but I suspect we’ll see inventory numbers trending upwards in May’s stats when they are published at the end of the month.
This is the longest downturn I’ve experienced in the real estate market since I started working in the late 1990s. Still, I believe it’s a bit of a blip, if you will, just what seems to be a long one. Buying real estate is never for the faint of heart but if you’re planning to hold onto a property for the long term, values will almost certainly rise.
Case in point: In April 2025, the average price for a detached home in Toronto was just over $1.7M. In April 2015, it was $1,056,114. Current prices are definitely down from the peak we saw in 2021-2022, but a $700k increase in value over 10 years is significant. Condos also saw similar growth, from an average of $407,612 in April 2015 to $710,000 in April 2025.
As always, it’s important to remember that Toronto is a city of micro-markets and that sales in some areas, such as Cabbagetown, Riverdale, Roncy or Bloor West, just to name a few, don’t usually reflect the trends we see in the rest of the city.
So, what needs to happen for Toronto’s market to bounce back?
Another rate decrease would be beneficial and could fuel a little more interest. But it won’t be until relations between Canada and the US, and their global partners, stabilize that people will feel more confident.
From the reports coming out of Washington after Carney met with Trump, it sounds a little positive, but we’re a long way off from a new trade agreement. Once that is in place, we’ll see more confidence in the market. People are checking their portfolios daily, unsure if they’ve lost or gained money. Stock markets wobble with every new headline.
So, where are the opportunities, you might be asking? There are many listings that are just sitting on the market, waiting for showings, or waiting for offers. Some owners want to sell, but others need to.
Right now, the deals are primarily in the condo market. Approximately 1,500 one-bedroom condos are listed across Toronto, starting at just $199,000. If you’ve got a solid down payment and can hold onto it for a decade, there’s strong potential for profit. With new condo projects being canceled, put on hold, or converted to rentals, inventory could stagnate, pushing affordability even further out of reach.
Another promising option? Properties that need significant renovation. Not as quick flips, but as principal residences. Renovation costs are unlikely to drop before the market rebounds, so buying now means securing a lower purchase price even if you pay a bit more for construction. Just recently, a semi-detached home in Cabbagetown in need of some TLC sold for under $900K, on a street where a renovated semi fetched $1.5M in 2023.
If you’re curious about your home’s current value or want to discuss the market, feel free to reach out. Let’s talk real estate.
