Insights from Vicky Gill – RE/MAX Real Estate Broker

The Greater Toronto Area (GTA) real estate market is evolving rapidly in 2025, shaped by shifting economic conditions, fluctuating interest rates, and a surge in housing inventory. As a trusted Realtor® with years of experience guiding clients through complex markets, I’m here to break down the trends, challenges, and opportunities you need to know.

1. Current Market Overview: A Buyer’s Advantage Emerges

The GTA has transitioned into a buyer’s market, with active listings reaching a 29-year high of 27,386 properties in April 2025—a 51% year-over-year increase. This influx of supply has softened prices:

• Average home prices dipped 4.2% year-over-year to $1,107,463 612.

• Condo apartments saw the steepest decline (-6.9%), while detached homes fell 5.6%.

• Days on market rose to 33 days, and properties now sell for 1% below asking price on average, a stark contrast to 2024’s 102% ratio.

Despite seven consecutive Bank of Canada rate cuts (now at 2.75%), buyer demand remains cautious due to macroeconomic uncertainty, including U.S. trade tensions and shifting immigration policies.

2. Key Drivers Shaping the Market

Affordability Improvements

Lower borrowing costs and moderating prices have improved affordability. For example, a 3-year fixed mortgage rate now sits at 3.89%, easing monthly payments for first-time buyers. TRREB predicts a 2.6% price increase by year-end, reaching $1,147,000, driven by pent-up demand and seasonal activity.

Supply Challenges

While inventory is high now, housing starts have plummeted to 2009 levels, threatening long-term supply. This underscores the urgent need for policies to accelerate “missing-middle” housing (e.g., townhomes, duplexes) to meet population growth.

Economic Headwinds

Trade disruptions and election-year policy debates are causing hesitancy among buyers and sellers. Many are adopting a “wait-and-see” approach until economic clarity emerges.

3. Opportunities for Buyers and Sellers

Buyers: Negotiate with Confidence

• Increased choice: With 51% more listings than 2024, buyers have leverage to negotiate prices, closing dates, or conditions.

• Focus on condos: Condo prices have dropped nearly 7%, offering entry points for investors or first-time buyers .

Sellers: Strategic Pricing is Critical

• Competitive positioning: Overpriced homes linger on the market. Work with an agent to analyze comparable sales and price strategically.

• Highlight unique features: In a saturated market, staging and targeted marketing are essential to stand out.

4. The Road Ahead: TRREB’s 2025 Forecast

TRREB projects 76,000 home sales in 2025, a 12.4% increase from 2024, as lower rates draw buyers back. However, price growth will remain modest, aligning with inflation. Single-family homes are expected to outperform condos due to tighter supply .

5. Final Thoughts from Vicky Gill

The GTA market is at a crossroads. For buyers, this is a rare window to secure value in a high-inventory environment. For sellers, patience and adaptability are key—price realistically and leverage professional expertise to navigate longer sales cycles.

As we move deeper into 2025, keep an eye on:

• Interest rate trends: Further cuts could reignite demand.

• Policy shifts: Federal and municipal housing initiatives may ease supply constraints.

• Global economic signals: Trade resolutions could stabilize consumer confidence.

Whether you’re buying, selling, or investing, partnering with a knowledgeable Realtor® ensures you stay ahead of the curve. Let’s turn today’s challenges into tomorrow’s opportunities—reach out for a personalized strategy tailored to your goals.

Vicky Gill
RE/MAX Real Estate Broker | GTA Market Expert
📞 647-655-4455 | 📧 [email protected]

Stay informed. Stay empowered. Let’s make 2025 your year in real estate.
#VickyGill #GTARealEstate #MarketInsights #HomeBuying #HomeSelling