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2 Things Shifting the Toronto Real Estate Market in 2025

We are now almost 2 weeks into 2025, while it is too soon to call any trends for the year, some agents have said that the past few weeks have been unusually busy, even during the holidays.


The Toronto Real Estate Board just released the official numbers for December 2024, the overall sales were actually down compared to December 2023.


However, I spotted some surprising numbers and I want to share them with you.


Overall, sales in December 2024 were just 1.8% down compared to December 2023.


But if we break things down into different housing types and areas, you will see dramatic differences.


Let’s start with detached homes in the 416 area.


Sales were down 16.3% in December year over year.


Detached homes in the 905, down only 2.4%.


Semi detached sales in the 416 were down 11%.


905, down 8.2%.


What about townhomes?


Sales were up a significant 21.4% in the 416 area and 2.4% in the 905 area.


This is in line with what I told you previously, townhouses only had less than 2 months of inventory and will be driving the market.


How about condos?


Sales were down 4.7% in the 416 area.


In the 905 area, sales were surprisingly up a big 17.2%.


Indeed, we were negotiating offers even on Christmas and New Year’s Day and both happened to be for condos in Markham, the 905 area.


This is by no means saying that the market is going crazy again, we are far from that.


I would say there are 2 things that are happening.

One, sellers are becoming more realistic.


Most sellers in 2024 had a hard time accepting the fact that the market was down and they were generally quite stubborn about the price they wanted.


But as time passes, reality starts to kick in.


They keep getting low ball offers or no offers at all.


This is where the psychology shifts.


They start to understand that the market price isn’t determined by what they want, rather it is determined by what buyers are willing to pay.


At this stage, they become more realistic and willing to compromise


So more transactions are starting to happen.


The second thing is more first time buyers are coming out to the market.


They are taking advantage of the down market, the new mortgage rules and the lower interest rates.


As long as their math works out, they still prefer to get into the ownership market over renting.


They are purchasing a home as a long term investment so they are less worried about short term fluctuations.


That’s why we are seeing more activities in the lower end of the market, condos and townhomes.


Of course, one month of data alone is not enough to say that we have any trends.


I will keep you posted on the most up to date market movements.


The market is also anticipating another rate cut on January 29, so if you want to stay on top, make sure you subscribe and hit the bell now.

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