Posted on
February 18, 2025
by
Brian Elder
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.
