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Canada’s economy just slipped into the red, with GDP falling by 0.2% in February 2025. But this isn’t just another economic headline—behind the numbers are key signals that real estate investors need to pay attention to.
If you’re someone trying to time your next investment move, here’s what you need to know.
The Economic Dip: Temporary or Trouble?
February’s GDP decline followed a modest gain in January. The slowdown impacted 12 of 20 major sectors, and a major factor was bad weather. Industries like transportation and warehousing were hit hard.
But don’t panic—this doesn’t look like a long-term issue. Early signs from March show a bounce back, and Q1 growth could still land around 1.5%.
That said, Q2 might get choppier. Tensions in U.S. trade are rising, and that could cause more headwinds. Still, let’s zero in on what this means for Toronto real estate.
Real Estate Trends Toronto Investors Should Watch
Sales Are Soft
Brokerage activity in Toronto dropped over 10% in February—the third month in a row. Buyers are on the sidelines. If you’re selling, don’t expect bidding wars unless your price is sharp and your deal is strong. Overpricing right now? Fastest way to sit stale.
Builders Are Pulling Back
Construction is slowing down—especially for single-family homes and row houses. Developers don’t want to overbuild if buyers aren’t ready. This means fewer new homes coming online, which sets up a future supply crunch once demand returns.
Buyers Are Still Here—They’re Just Waiting
We’re seeing people shift money from fixed-term deposits into liquid accounts. That tells us buyers have cash—they’re just holding out for a better entry point or more clarity on the market.
What Could Trigger the Next Move?
Inflation is now back at target, and the Bank of Canada expects slower growth ahead. That means interest rate cuts could be coming as soon as June. If that happens, we might hit the bottom of the rate cycle by this summer.
And when that happens, demand could snap back quickly.
Where the Smart Money's Going: Cash Flow
Forget gambling on rapid appreciation. The 7–8% annual growth we saw before 2022 isn’t coming back anytime soon. But right now? Cash flow is king.
Toronto multiplexes are finally cash flowing well, even with prices staying flat. Borrowing costs are easing, and rents are holding strong—that combo is driving the best returns we’ve seen in years.
Prices are already down 15–20% from the peak and have been holding steady. We’re likely closer to the bottom than the top. Meanwhile, builders are holding back on new supply—especially for houses (not condos). That means inventory will stay tight once demand returns.
This is a rare setup: strong cash flow, good long-term upside, and low competition.
It’s okay to be cautious. But just because the market feels slow doesn’t mean it’s a bad time to buy. The Toronto multiplex space is holding up because the numbers make sense—and that’s what matters to our investors.
If you want to see what’s actually out there, book a free strategy session with us. We’ll show you real properties, real numbers, and help you figure out if this is your moment to invest.
Whether you want a turnkey property or a value-add project, we’ll help you find the right fit.
Here’s what it’s like to start as a client with us:
- Initial Consultation: We’ll talk with you to understand your needs and teach you how to invest wisely in Toronto real estate.
- Market Search & Purchase: We’ll search the market to find the perfect property for you.
- Renovation Support: If the property needs renovations, our trusted contractors are ready to help, and we’ll coach you as you manage the project.
- Leasing and Management: If you need help renting out and managing your property, our leasing and management team is here for you.
Ready to get started? Click on the link below, and let’s start working together!
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!
