02/07/2025
Happy Friday!
The Toronto Regional Real Estate Board’s (TRREB) Market Outlook and Year in Review report reveals that a well-supplied housing market will keep average annual home price growth at the inflation rate, with the average selling price increasing moderately in the Greater Toronto Area (GTA) over the course of the year.
“A growing number of homebuyers will take advantage of lower borrowing costs as we move toward the 2025 spring market, resulting in increased transactions and a moderate uptick in average selling prices in 2025. However, the positive impact of lower mortgage rates could be reduced, at least temporarily, by the negative impact of trade disruptions on the economy and consumer confidence,” said TRREB Chief Market Analyst Jason Mercer.
For 2025, TRREB forecasts: – A total of 76,000 home sales in 2025, up by 12.4 percent over 2024. Lower borrowing costs coupled with ample supply will improve affordability and prompt more buyers to move off the sidelines. – The average selling price to reach $1,147,000, up by 2.6 percent over 2024, for all home types combined. Price growth will be stronger for single-family homes, as compared to the well-supplied condo apartment market.
Market watch - January 2025 Infographic.
“As we look to the future, prioritizing housing diversity and supply remains paramount. Encouraging the development of missing-middle housing—such as townhomes, duplexes, and low-rise multi-unit buildings—is critical to delivering a range of attainable options for individuals and families. Purpose-built rentals also play a vital role in ensuring everyone has access to a place they can call home,” said TRREB President Elechia Barry-Sproule.
“At TRREB, we believe the solution starts with collaboration. Traffic congestion and affordability are interconnected challenges that require integrated approaches. The current system of high development charges, taxes, and administrative hurdles only exacerbates the issues. This stalls progress on building the housing supply we need to support our growing communities,” said TRREB CEO John DiMichele.
The year started with GTA REALTORS® reporting 3,847 home sales through TRREB’s MLS® System in January 2025 – down by 7.9 percent compared to the same period last year. New listings in the MLS® System amounted to 12,392 – up by 48.6 percent year-over-year. On a seasonally adjusted basis, January sales were up month-over-month compared to December 2024. The MLS® Home Price Index Composite benchmark was up by 0.44 percent year-over-year in January 2025. The average selling price, at $1,040,994, was up by 1.5 percent compared to January 2024.
