Toronto Real Estate Trends & Predictions for January 2025
The Toronto real estate market is always evolving, and 2025 is shaping up to be an interesting year. According to the latest Toronto Regional Real Estate Board (TRREB) report, we can expect to see an increase in home sales as more buyers take advantage of lower mortgage rates. That said, factors like economic uncertainty and global trade disruptions could still have an impact on consumer confidence.
What’s Happening in the Market?
TRREB forecasts 76,000 home sales this year—a 12.4% increase over 2024. That’s great news for sellers, but it also means more buyers are coming back into the market. With mortgage rates easing and more homes available, competition might not be as intense as in previous years.
What to Expect:
The average home price is projected to hit $1,147,000, marking a 2.6% increase from last year.
Single-family homes will likely see more price growth compared to condos, which still have plenty of supply.
With more listings on the market, buyers will have a better selection, helping balance the market.
Why Housing Supply Still Matters
Even with more listings coming online, housing affordability continues to be a challenge. Missing-middle housing—like townhomes, duplexes, and low-rise multi-unit buildings—could provide more attainable options, but development hurdles remain.
Purpose-built rental housing is another crucial factor. If Toronto wants to remain a livable city, we need more rental stock to support long-term residents. TRREB has been vocal about the need for government collaboration to streamline the process and lower development costs so that more homes can be built.
January 2025 Market Recap
The year kicked off with 3,847 home sales, which was actually 7.9% lower than January 2024. But before we jump to conclusions, new listings were up 48.6%, meaning more options for buyers. Prices remained stable:
The MLS® Home Price Index Composite benchmark rose 0.44% year-over-year.
The average selling price increased 1.5% from last January, reaching $1,040,994.
On a seasonally adjusted basis, we saw a slight improvement in sales compared to December 2024—so the market is moving in the right direction.
Our Two Cents: What This Means for You
Looking ahead, we expect to see more buyers re-entering the market this spring as mortgage rates continue to ease. If you’re considering buying, this could be a great opportunity to secure a home before prices climb further. For sellers, more competition means pricing strategically is key—homes that are priced right will move faster.
The bottom line? The Toronto real estate market in 2025 is all about balance. We’re seeing more listings, steady demand, and moderate price growth. Whether you’re buying or selling, making informed decisions is more important than ever.
