The Toronto real estate market has kicked off 2025 with shifting trends in home sales, prices, and supply. According to the latest TRREB Market Outlook and Year in Review report, we can expect moderate price growth and increased activity as borrowing costs decline. Let’s break down the key insights from this month’s report.
January 2025 Market Trends
📊 Home Sales:
- 3,847 homes sold in January 2025 – down 7.9% year-over-year.
- However, month-over-month sales increased, showing early signs of market recovery.
🏡 New Listings:
- 12,392 new listings, marking a 48.6% increase from January 2024.
- Increased housing supply in Toronto, Vaughan, Richmond Hill, and Markham will provide more choices for buyers.
💰 Average Home Price:
- $1,040,994, up 1.5% from January 2024.
- The MLS® Home Price Index Composite benchmark rose 0.44% year-over-year.
- Single-family homes in Vaughan and Richmond Hill saw stronger price growth than condos, which remain well-supplied.
2025 Real Estate Market Forecast
According to TRREB’s Market Outlook, we can expect:
📈 Increased Home Sales
- Forecasted 76,000 home sales in 2025, a 12.4% increase over 2024.
- Lower mortgage rates will encourage more buyers to enter the market.
🏠 Moderate Price Growth
- The average GTA home price is expected to reach $1,147,000 in 2025, a 2.6% increase.
- Detached homes in Vaughan, Markham, and Richmond Hill may see faster appreciation than condos due to limited supply.
💰 Rising Buyer Interest
- 28% of survey respondents plan to buy a home in 2025.
- 42% of buyers are first-time homebuyers, highlighting strong demand.
Opportunities for Buyers and Sellers in 2025
🔹 For Buyers:
- More inventory means better negotiating power.
- Lower interest rates will improve affordability.
- The best pre-construction projects in Vaughan, Richmond Hill, and Markham offer great incentives for early buyers.
🔹 For Sellers:
- Increased demand means homes priced competitively will sell faster.
- If you’re thinking of selling, now is a great time to get a home evaluation in Vaughan, Richmond Hill, or Toronto.
Final Thoughts: What’s Next for the Market?
With rising sales, moderate price growth, and more homes hitting the market, 2025 is shaping up to be a stronger year for Toronto real estate. If you’re considering buying, selling, or investing, now is the time to stay informed and act strategically.
📩 Need expert advice? Contact me today to explore your options in Toronto, Vaughan, Richmond Hill, and Markham real estate!
For the full TRREB report, visit: TRREB Market Outlook
