The February 2025 Toronto real estate numbers are in, and if you’ve been following the market, it’s no surprise that we’re still in a buyer’s market. The reality is, there are way more listings than buyers right now, which gives buyers the upper hand in negotiations.
| Feb 2024 | Feb 2025 | YoY | |
|---|---|---|---|
| Average Price | $1,108,720 | $1,084,547 | -2% |
| Sales | 5,607 | 4,037 | -28% |
| New Listings | 11,396 | 12,066 | +6% |
Buyer’s Market Still in Full Swing
With more homes for sale than there are buyers, there’s more room for negotiation than we’ve seen in years. It’s clear that buyers hold the power at the moment — but many are still on the sidelines, waiting for the right time to pull the trigger.
If you’re one of those sitting on the fence, now might be the time to get into the market.
| Property Type | Feb 2024 | Feb 2025 | Change | SNLR |
|---|---|---|---|---|
| 416 Detached | $1,657,026 | $1,782,262 | +8% | 34% |
| 416 Semi | $1,319,884 | $1,275,214 | -3% | 49% |
| 416 Condo | $726,608 | $724,632 | -0% | 31% |
| 905 Detached | $1,380,706 | $1,339,120 | -3% | 34% |
- Seller’s Market (SNLR above dotted line): Demand exceeds supply, leading to competition among buyers and price increases.
- Buyer’s Market (SNLR below dotted line): Oversupply gives buyers negotiating power and may result in lower prices.
- Balanced Market (SNLR at dotted line): Supply and demand are in equilibrium, leading to stable prices at around 60% in the Toronto real estate market.
Here’s a quick breakdown of the current market conditions:
- Semi-detached homes are in the highest demand right now, with the strongest sales-to-listing ratio. These homes are the most balanced in terms of supply and demand, making them a great choice for both investors and homebuyers.
- Condos are the weakest sector of the market at the moment, with prices continuing to trend downward. This could present opportunities for buyers looking to pick up a condo at a lower price, but you should always be mindful of long-term value and resale potential.
- Detached homes have been surprisingly resilient, with prices actually increasing by 8% year-over-year, despite the overall buyer’s market. This is a bit of a twist, as detached homes continue to hold value even as the rest of the market slows down.
The Impact of Trade Wars and Market Uncertainty
While Toronto real estate is seeing a big discount right now — roughly 15% off compared to a couple of years ago — the bigger picture is more complicated. With ongoing trade wars and market uncertainty, it’s tough to predict exactly where things will go in the short term.
Our advice? Don’t get too greedy and assume prices will keep dropping. The reality is, prices have been fairly steady since mid-2022, even when we didn’t know how high or how long interest rates would stay.
Sure, there’s still some risk with trade wars, but those could actually work in the market’s favour by driving interest rates lower. This creates more balance in today’s market compared to a couple of years ago when rates were climbing higher and higher.
What to Expect Moving Forward
Looking ahead, we’re expecting more sideways movement in the market.
Prices are unlikely to skyrocket, but they’re also not going to crash. The good news is that we’re in a buyer’s market, which means there are still plenty of opportunities to invest, particularly if you have a long-term view.
There are some fantastic cash flow opportunities out there right now — think over $1,000 a month — especially in areas with value-add potential.
For example, garden suite projects continue to show strong returns, with the potential for a $300K lift with a $300K build. It’s the perfect time to consider real estate investments that generate steady income while also offering room for growth in the future.
Don’t Speculate, Think Long Term
One of the key takeaways in today’s market is to avoid speculation. We’re not in a market where you want to bet on price movements, especially when trade wars and global uncertainties could swing things in unexpected directions.
Instead, focus on the long-term prospects of your investments. Cash flow, value-add potential, and the ability to hold for the long haul are what will make you successful in today’s market.
We’re optimistic about the opportunities available, especially for buyers who are ready to play the long game. Whether you’re looking for a new home, a rental property, or a project to add value to, there’s plenty of money to be made in Toronto real estate right now.
How We Can Help
If you’re looking to navigate this buyer’s market and find the right investment opportunities, don’t hesitate to reach out.
We can help you identify properties with strong cash flow, value-add potential, and long-term growth. It’s not about speculating on short-term price movements — it’s about making smart, well-informed decisions that will pay off in the future.
Click below to schedule a call with us!
