January has already come to an end and now we are more than halfway through Winter, where is the time going? The Toronto Regional Real Estate Board (TRREB) recently released its Year in Review report which revealed that a well-supplied housing market will keep average annual home price growth at the rate of inflation, with the average selling price increasing moderately in the Greater Toronto Area (GTA) over the course of 2025.
TRREB is forecasting a total of 76,000 home sales in 2025, up by 12.4% over 2024. Lower borrowing costs coupled with ample supply will improve affordability and prompt more buyers to move into the market. The average selling price is predicted to reach $1,147,000, up by 2.6% over 2024, for all home types combined. Price growth will be stronger for single-family homes compared to the well-supplied condo apartment market.
January reported 3,847 home sales through TRREB’s MLS System down by 7.9% compared to the same period last year. Seasonally adjusted, January sales were up month-over month compared to December 2024. The average selling price, at $1,040,994, was up by 1.5% compared to January 2024.
The months of inventory, a key metric used to gauge the pace of home sales across all property types, was reported at nearly 4.5 months. If no new homes, of any kind, were listed on the MLS, the current inventory would be completely sold out in that time. With 4.5 months of inventory, the market is approaching the threshold of a Buyers' Market, meaning buyers would have more options, which could put pressure on sellers to price their homes more competitively.
The condominium market in January softened with the number of sales down 13% and prices down only 1.7% across the GTA. Prices will remain relatively flat in the condominium market throughout 2025 as a record number of newly completed units are delivered across the GTA.
As your Realtor, I am always here to address any of your real estate questions. I look forward to connecting with you soon.
Have questions?
Want to know more about Toronto Real Estate Market Update - January 2025? Send me a message and I'll get back to you within 24 hours.