The Toronto housing market has long been a hot topic in real estate conversations, but 2025 is presenting challenges that are hard to ignore. With record-high inventory, sluggish buyer activity, and rising economic uncertainty, many are asking: Is now a good time to buy in Toronto? Or should buyers continue waiting for home prices to drop further?

Toronto Housing Inventory Hits a 10-Year High

According to analyst Axel Lands, active listings in Toronto have surged past 30,000 units, doubling the 10-year average of 15,000. Traditionally, April is a strong month for home sales in the Greater Toronto Area (GTA). But this year, April sales volume reached its lowest point since 1995 — excluding the pandemic dip.

New listings continue to flow in at average rates, meaning supply keeps rising while demand remains stagnant. This supply-demand mismatch is a major driver behind falling prices and longer days on market.

Why Are Buyers Sitting on the Sidelines?

Even with the Bank of Canada signaling potential interest rate cuts later in 2025, consumer confidence hasn’t bounced back. Several macroeconomic factors are to blame:

• Sticky inflation, especially on essentials like food
  
• Uncertainty around tariffs and international trade
  
• Job market instability
  
• Declining business investment
  

Until these conditions improve, buyers will continue to delay their decisions, hoping for deeper price drops or better economic signals.

Are Toronto Condo Prices at Rock Bottom?

This might surprise you: many Toronto condos are now selling below construction cost, especially micro-units between 300–400 sq ft. These units, once popular with real estate investors, are struggling to attract both renters and end-users.

With more condo developments set to complete by 2026, we’re likely to see continued downward pressure on both prices and rental rates.

Immigration Policy Shift: A Critical Demand Driver at Risk

Immigration has been a major fuel for Canada’s housing demand, especially in urban centers like Toronto. But new federal policies aimed at slowing immigration intake may reduce demand at the worst possible time — just as the market is flooded with inventory.

This could further destabilize pricing, leading to:

• Buyers walking away from deposits
  
• Appraised values lower than purchase prices
  
• Developers initiating legal action to recover losses
  
• Widespread use of blanket appraisals to justify valuations
  

Is There a Price Floor in the Toronto Housing Market?

The big question everyone is asking: Have we hit the bottom yet?

Historically, real estate markets find a floor — a point where sellers simply won’t go lower. But today, when resale prices are lower than the cost to build, we may not have found that floor yet.

We’re not predicting a crash, but we are realistic: a full recovery will take more than a few rate cuts. Structural issues like oversupply, reduced immigration-driven demand, and economic uncertainty need to be addressed first.

What Should Buyers and Investors Do Right Now?

The best move? It depends on your goals:

• If you’re an investor looking to flip a unit in 12 months — now may not be your time.
  
• If you’re a buyer looking for a long-term home and you find a good deal in a buyer-friendly market — this could be an opportunity.

Toronto real estate in 2025 is a buyer’s market in many ways, but it demands strategic thinking and expert advice.

Navigate Toronto’s Shifting Market with Confidence

In a year marked by high inventory and economic uncertainty, making the right real estate move requires more than guesswork — it calls for insights grounded in data and experience.

For those seeking clarity, trusted voices in the industry can make all the difference. Whether you’re eyeing a long-term home or considering your next investment, getting informed is your strongest asset.

Want to dive deeper into smart strategies? Tune in to Make Money Count — where real estate realities meet practical advice.