Victor Alvarez - Toronto Real Estate Expert

TORONTO REAL ESTATE MARKET APRIL 2025

FOREWORD

Home-ownership in the Toronto area became more affordable this April compared to last year. Prices have eased, borrowing costs are coming down, and inventory is on the rise—giving buyers more choice and negotiating power.

While many buyers are still cautious due to broader economic uncertainty, the market is showing signs of late spring momentum. If interest rates continue to fall as expected, trade wars cool down, and job confidence grows, we could see a stronger push from buyers in the months ahead.

If you are selling this year, pricing strategically and presenting your property at its best is very important. With more listings available, buyers have more options – but well-presented properties still get strong offers.

For buyers, more inventory means you have more options, less competition, and more negotiating power. If you have been waiting for the right time to buy, this is it.

Whether you are thinking of buying or selling, the Toronto market is giving us real opportunities right now. If you are unsure of your next move, I would love to chat and help you figure out the best approach.

For the right pricing strategy and timing, call 647-223-0562 or email at victor.alvarez@bell.net.

SALES SUMMARY

The Toronto real estate market is echoing the sentiment of March 2020, when the world was gripped by the onset of a global pandemic. At that time, uncertainty brought the market to a standstill. Similarly, in March 2025, the market is experiencing hesitation—not due to health concerns, but as a result of the ongoing global trade war.

With a federal election scheduled for April and persistent economic tensions, the typical spring market surge has been delayed. This uncertainty has led many buyers to remain on the sidelines.

According to TRREB’s MLS® System, 5,011 homes were sold in March 2025—a 23.1% decline compared to March 2024. Meanwhile, new listings reached 17,263, marking a 28.6% year-over-year increase. On a seasonally adjusted basis, sales in March were also down compared to February 2025. The average selling price stood at $1,093,254—a 2.5% drop from March 2024. On a month-over-month, seasonally adjusted basis, the HPI decreased, while the average selling price remained flat.

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Toronto Real Estate Market Report April 2025

We’re seeing a tale of two markets: condo townhomes, semi-detached homes, and freeholds continue to garner the most attention. Some Toronto neighbourhoods are benefiting from the nicer weather, with increased showings and, surprisingly, even multiple offers. Meanwhile, the condo market—particularly smaller, investor-owned units—remains muted and firmly in buyer’s market territory.

An interest rate announcement is expected on April 16, with many predicting at least a 0.25% cut, while some economists forecast as much as 0.50%. Any decrease would provide even greater opportunity for buyers ready to enter the market. Similar to what we experienced post-pandemic, as confidence returns, we expect the delayed spring market to rebound with renewed demand. All indicators point to a tremendous window of opportunity for first-time buyers over the next six months.

Rental Rates Have Fallen Vacancies Have Risen - Leading to Affordability

Rental vacancy rates have climbed to approximately 2.7%. Average asking rents have declined for the fifth consecutive month, dropping 4.8%. One-bedroom units saw a 0.3% month-over-month decrease to $1,850—down 2.4% year-over-year. In Toronto proper, rents for studios and smaller units have fallen by 5–6%, providing tenants with more affordable options. Many landlords have chosen not to increase rents on existing leases. However, it’s also worth noting that more affordable cities outside the GTA have seen mild rent increases as people move away from high-cost urban centers.

A record high of 39% of condos in Ontario are owned by rental investors. The decline in rents may prompt some of these investor-owned units to come to market, creating a rare short-term opportunity for first-time buyers—who have long faced barriers to entering the housing market—to benefit from improved affordability. However, this may not last long. As borrowing costs continue to decrease, the election passes, and trade tensions ease, stronger market absorption is expected in the months ahead.