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Is Toronto’s Real Estate Market a Buyer’s Market in 2025?
If you’ve been wondering whether Toronto’s housing market has finally tipped in favour of buyers, the answer is yes — and it’s not even close. The latest data confirms what many of us have been feeling: listings are up, sales are slow, and sellers are struggling to get traction.
But here’s the real story behind the numbers: more listings don’t automatically mean more opportunities. In fact, it’s easy to get burned if you don’t know how to play this market right. Whether you’re looking to buy your first investment property, upgrade to a multiplex, or sell strategically, what you do next matters more than ever.
The Harsh Reality: Only One in Five Homes Are Selling
Toronto’s sales-to-new-listings ratio is hovering around 28%, which means only one in three to four properties listed actually sells. That’s the lowest absorption rate we’ve seen in years — a clear sign of a deep buyer’s market.
For sellers, this means expectations need to be reset. A lot of agents are “buying listings,” overpromising high sale prices just to win your business, only to spend months walking you down to reality. If you list too high, you risk chasing the market down — and by the time you adjust, you’ve already lost critical exposure and leverage.
Buyers, on the other hand, are finally in control. You can negotiate hard, walk away from overpriced homes, and land deals that were impossible even a year ago.
Why Waiting Could Cost You More Than You Think
Many homeowners and investors are still waiting for the “perfect time” — maybe after the next rate cut, or when the headlines sound more optimistic. But the truth is, by the time the market looks “safe,” the best deals are long gone.
If you’re selling and buying laterally (e.g., trading a condo for a multiplex), waiting can actually cost you more. You might sell your condo for slightly less, but you’ll likely save even more on the buy side — especially when higher-value homes are discounted more steeply in a downturn.
In other words, you lose small on the sale but win big on the purchase.
House Hacking: The Smartest Move in a Slow Market
For new buyers, there’s no better time to house hack — live in one unit, rent out the others, and let your tenants cover most (or all) of your mortgage. Toronto’s multiplex zoning and rental demand make this strategy especially powerful right now.
Even a simple setup, like renting out a basement suite, can slash your monthly housing costs by thousands. You’ll save cash, qualify for better financing, and build equity faster — all while positioning yourself for long-term growth.
Forget the $2M dream home. Build a foundation first. The freedom you gain from positive cash flow beats luxury finishes every time.
Where the Smart Money’s Moving
Toronto’s prime west-end neighbourhoods like Trinity Bellwoods, Seaton Village, and Little Italy are seeing properties that once sold for $2M now trading closer to $1.3–$1.4M. These are blue-chip locations offering rare entry points for investors and end users alike.
For higher cash flow, look slightly north to Eglinton West, especially near the LRT line. It’s a mix of older homes and new builds, with major infrastructure upgrades coming. Prices haven’t yet caught up to the transformation underway — a classic setup for strong future appreciation.
What’s Ahead for 2026: Caution Meets Opportunity
Expect 2026 to be a make-or-break year. Prices in the freehold market could soften slightly, while the condo market faces bigger risks as oversupply and investor fatigue set in.
That said, buyers today hold a massive advantage. You can negotiate 10–20% off asking in many cases — far better than chasing a “maybe” 5% drop next year. Toronto’s fundamentals remain solid: jobs, immigration, and tight rental supply. As long as you focus on quality assets and long-term cash flow, you’ll come out ahead.
Key Takeaway: In a Buyer’s Market, Strategy Beats Timing
The biggest mistake sellers make right now is overpricing — and the biggest mistake buyers make is waiting for a signal that never comes. The winners in this market are the ones who act decisively, buy quality, and focus on long-term fundamentals over short-term noise.
At Elevate Realty, we live and breathe Toronto real estate investing. Our team tracks every neighbourhood shift, every zoning change, and every opportunity that helps investors win — even in tough markets.
If you want full support in Toronto multiplex investing, our team can help you:
- Find high-potential properties
- Crunch the numbers so you know exactly where you stand
- Coach you through renovations to maximize returns
- Lock in great tenants
- Provide full property management so your investment runs smoothly
Want to see what’s possible for you? Book a strategy session with us here.
What Toronto Real Estate Investment Is Right For You?
Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!
