The May 2025 data is in, and the Toronto real estate market is sending a clear message: if you’re still waiting for prices to crash, you might be waiting a long time.
Are Toronto Real Estate Prices Still Falling?
Not really.
The steep price correction most buyers were hoping for has already happened. Month-over-month, prices have been flat — not falling. The “crash” is old news. What we’re in now is a frozen market. Sellers aren’t desperate, and most aren’t dropping their prices.
This is especially true in the Toronto freehold space. Sellers with decent cash flow and dropping mortgage rates are in no rush to sell. In fact, many are in the best cash flow position they’ve seen in years. Holding power is getting stronger, not weaker.
Toronto Buyers Want Deals — But the Market Isn’t Cooperating
This standoff between Toronto real estate buyers and sellers is creating one of the slowest markets we’ve seen in years. Buyers are still hoping for more price drops, especially with ongoing economic concerns. Meanwhile, sellers don’t feel the need to discount further.
Sales volumes are low. Listings are rising. But prices aren’t moving much. Something has to shift eventually — and when it does, the freehold side of the market is more likely to rise than fall. Here’s why:
Freehold properties are generating strong rental cash flow
Multiplexes may soon benefit from Toronto’s new sixplex zoning rules
Government housing policy is pushing for more missing middle housing, not condos
Are Condos in Toronto Still a Good Investment?
Toronto condos are a very different story right now. While prices haven’t dropped as much as Toronto (416) freeholds from the peak, they’re still stuck — and rents often don’t cover the carrying costs. That means most condo investors are cash flow negative.
So far, most investors are still holding on, but cracks may form. If anyone’s forced to sell, it’ll likely be in the condo market first. And with limited rent growth, it’s tough to justify paying more for condos unless you’re betting on appreciation — which isn’t happening right now.
| Area | Peak | May 2025 | Change |
|---|---|---|---|
| 416 Detached | $2,073,989 | $1,719,937 | -17% |
| 416 Semi | $1,545,447 | $1,299,387 | -16% |
| 416 Condo | $831,351 | $709,905 | -15% |
| 905 Detached | $1,727,963 | $1,321,458 | -24% |
What’s the Best Real Estate Investment Strategy in Toronto Right Now?
Forget the idea of Toronto real estate as a growth stock. In today’s market, it’s time to think of properties as cash-flowing assets — like a dividend stock.
The best strategy now?
Buy properties that cash flow today, especially Toronto multiplexes
Add value through renovations or unit conversions
Lock in stable rental income while rates are falling
This approach gives you control over your returns, instead of waiting for the market to do the work.
Final Thoughts: Toronto Real Estate Outlook for 2025
The Toronto real estate market isn’t crashing — but it’s definitely not booming. It’s stuck in neutral. And if you want clarity, here it is:
Prices are flat, not falling
Freeholds offer stronger fundamentals than condos
Real gains come from cash flow, not speculation
Value-add strategies are how you win in this cycle
Waiting for the “perfect moment” probably isn’t the play anymore. If you’re serious about investing in Toronto real estate, focus on income, control, and strategy — not market timing.
How We Can Help
If you’re a buyer thinking long-term—especially in freeholds—this is your chance to make a smart move.
We help investors find deals with strong cash flow, value-add potential, and lasting upside. This isn’t about chasing quick price changes; it’s about building a portfolio that works for you over time.
Want to see what’s possible for you? Book a strategy session with us here.
