April 2025 Ontario Housing Market

Hi All,

April 2025 saw some notable shifts in the Greater Toronto Area housing market. While sales and prices followed seasonal patterns and rose from March, they were significantly lower compared to last year as buyers remained cautious. It seems that many buyers are waiting for better borrowing conditions and more economic stability before making a move.

On the flip side, new listings continue to increase, giving buyers more options, and the higher inventory levels helped strengthen their negotiating power. Prices, however, continued to trend downward across market segments year over year.

Home sales were up from March, but compared to last year, they dropped 23.3%, showing that buyers are taking a cautious approach.

• Many buyers are holding off, waiting for lower borrowing costs and more economic stability after the federal election before making a move.

• New listings saw an 8.1% increase year over year, meaning buyers had more choices on the market.

• Prices took a hit, with the MLS® Home Price Index Composite benchmark falling 5.4% annually year over year but edged up over last month.

• The average selling price dipped 4.1% year over year, landing at $1,107,463, as buyers used the market conditions to their advantage.

• More inventory gave buyers stronger negotiating power, helping drive prices down across different market segments.

  
  

Just a quick to note that over the past year, the PropTx MLS® System, which TRREB is a part of, has welcomed several new client boards. Many of their members are actively trading in the Greater Toronto Area and the broader Greater Golden Horseshoe region. Because of these additions, data has been updated to include listings and transactions from these boards. That means past figures have changed compared to previously published reports

BOC Rate Announcements 2025:

* Wednesday, Jan 29 (Cut .25% To 3.00%)

* Wednesday, March 12 (Cut .25% To 2.75%)

* Wednesday, April 16 (HOLD At 2.75%)

* Wednesday, June 4

* Wednesday, July 30

* Wednesday, September 17

* Wednesday, October 29

• Wednesday, December 10

The chart below illustrates the historical relationship between the Number of Active Listings (green), the Number of Transactions (orange), and Sales Price (blue). As shown, the number of active listings is returning to the normal pre-COVID range. As the gap between the Number of Active Listings and the Number of Transactions widens, we may see resistance to price increases.

Whether you're buying or selling, feel free to reach out. Now is a great time to discuss your spring and summer real estate plans!