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The Greater Toronto Area (GTA) is projected to experience a five percent increase in aggregate home prices by the fourth quarter of 2025, reaching $1,225,770. Single-family detached homes are expected to see a sharper seven percent rise to $1,523,466. However, the Toronto condo market is on a different trajectory, with prices anticipated to decline by one percent year-over-year due to a surplus of inventory.

The condo market, particularly in downtown Toronto, is described as the softest in recent history. With thousands of new units slated for completion in 2025 and easing interest rates, there will be a short-lived window of affordability, presenting an opportunity for first-time buyers. However, fewer new projects starting now could lead to a future period of low completions and intensified competition as investors return to the market.

The Bank of Canada’s recent rate cuts have already begun attracting buyers back into the GTA housing market, signaling a shift in activity. After a significant rate cut in October, buyer interest picked up, absorbing excess inventory and setting the stage for a competitive spring market in 2025. With limited new supply expected before spring, buyers may soon face increased pressure on prices as demand continues to grow.

Read the full article on: CTV NEWS