May 7, 2025
Toronto Real Estate Market Report ~ April 2025 | Buyers Still Waiting, Sellers Flood Market
As spring settles into the Greater Toronto Area (GTA), the real estate market continues to show signs of strain. While home sales followed seasonal expectations and ticked up slightly from March, overall activity remains far below last year’s pace. The combination of elevated inventory, high borrowing costs, and economic uncertainty is keeping many potential buyers on the sidelines — watching and waiting.
A Cooling Market with Rising Inventory
In April 2025, GTA REALTORS® reported 5,601 home sales through TRREB’s MLS® System — a 23.3% drop compared to April 2024. New listings increased by 8.1% to 18,836, and active listings surged by 54% year-over-year, hitting 27,386. This rise in inventory has given buyers significantly more negotiating power.
The average selling price declined by 4.1% to $1,107,463, while the MLS® Home Price Index Composite benchmark dropped 5.4% year-over-year. On a seasonally adjusted month-over-month basis, the average price also edged downward.
Sales and Average Prices by Home Type (April 2025)
Detached Homes
Sales: 2,556 (728 in 416, 1,828 in 905)
Average Price: $1,431,495 ($1,700,710 in 416, $1,324,280 in 905)
YoY Sales Change: -21.7% (-2.2% in 416, -27.5% in 905)
YoY Price Change: -5.4% (-6.8% in 416, -6.9% in 905)
Semi-Detached Homes
Sales: 565 (253 in 416, 312 in 905)
Average Price: $1,088,848 ($1,266,322 in 416, $944,934 in 905)
YoY Sales Change: -10.0% (+5.4% in 416, -19.6% in 905)
YoY Price Change: -4.1% (-7.2% in 416, -5.0% in 905)
Townhouses
Sales: 983 (205 in 416, 778 in 905)
Average Price: $912,629 ($1,018,449 in 416, $884,746 in 905)
YoY Sales Change: -22.0% (-22.1% in 416, -23.1% in 905)
YoY Price Change: -3.9% (-0.7% in 416, -5.2% in 905)
Condo ApartmentsSales: 1,430 (925 in 416, 505 in 905)
Average Price: $678,048 ($710,724 in 416, $618,196 in 905)
YoY Sales Change: -30.4% (-29.9% in 416, -31.5% in 905)
YoY Price Change: -6.8% (-7.3% in 416, -6.1% in 905)
Year-Over-Year Summary (April 2025)
Sales: 5,601 (2025) vs. 7,302 (2024), down 23.3%
New Listings: 18,836 (2025) vs. 17,418 (2024), up 8.1%
Active Listings: 27,386 (2025) vs. 17,783 (2024), up 54.0%
Average Price: $1,107,463 (2025) vs. $1,155,219 (2024), down 4.1%
Average LDOM: 25 days, up 31.6%
Average PDOM: 33 days, up 22.2%
What’s Influencing Buyer and Seller Behaviour?
🔹 Federal Election Aftermath & Trade Uncertainty
The recent federal election has left many households in wait-and-see mode. With Canada’s trade relationship with the U.S. still in flux, potential homebuyers are treading carefully. Economic confidence has taken a hit, and this hesitancy is reflected in declining sales across all major home types.
🔹 Affordability Gains (But Confidence Lags)
The silver lining? Homeownership is becoming more affordable. With mortgage rates beginning to trend lower and prices softening across much of the GTA, the cost of carrying a mortgage is easing. However, despite this improvement, buyers aren’t rushing back just yet — many are waiting for further rate cuts and more economic clarity.
🔹 Sellers Testing the Market
The increase in listings suggests that many sellers who delayed during 2024 are now re-entering the market. Some are motivated by slightly lower rates, while others may be trying to get ahead of further price declines.
🔹 Condo Segment Hit Hardest
Condo apartment sales fell by over 30% year-over-year, with price declines approaching 7%. This segment, often favoured by first-time buyers and investors, appears to be the most vulnerable amid affordability constraints and uncertainty around downtown office demand.
What to Expect Heading Into the Summer
Looking ahead, economists from RBC and TD anticipate a slow spring, followed by a potentially stronger second half of 2025 — if trade tensions ease and interest rates fall further.
The Bank of Canada is expected to lower rates again mid-year, which could help unlock pent-up demand.
However, both banks have cautioned that in Ontario (and particularly the GTA), price growth will likely be muted due to persistent affordability challenges.
TD Economics projects a roughly 6.4% decline in Ontario home prices by year-end, with possible stabilization or modest gains in 2026.
Takeaway for Buyers and Sellers
📉 Buyers: You’re in the driver’s seat. With rising inventory and little competition, this is an excellent time to shop with leverage. If you can secure a lower rate or expect one soon, the current environment favours negotiation and patience.
🏡 Sellers: Be realistic about pricing and market timelines. With buyers cautious and plenty of supply on the market, it’s critical to price strategically and ensure your home is well-marketed.
📈 Investors: Watch closely for price bottoms in the condo and townhouse segments. The long-term fundamentals of the GTA (population growth, limited new supply) remain strong — but timing and location will be key.
Have any questions about the market?
Message me on Instagram @TorontoRealEstate.ca !
Rylie C.
Sources
https://trreb.ca/wp-content/files/market-stats/market-watch/mw2504.pdf
