Toronto Real Estate Board Predicts a Buyer-Friendly 2025
The Toronto Regional Real Estate Board (TRREB) has released its Market Outlook and Year in Review report, forecasting a buyer-friendly real estate market in 2025. With slower price growth and lower borrowing costs, more buyers who have been waiting on the sidelines are expected to enter the market. Additionally, polling indicates that nearly two-thirds of renters won’t tolerate further rent increases before seriously considering homeownership.
More Supply, Slower Price Growth
TRREB anticipates a well-supplied market in 2025, which should help curb home price increases in the Greater Toronto Area (GTA). As a result, home prices are expected to grow at a rate below inflation, making conditions more favorable for buyers. The board projects 76,000 home sales this year, marking a 12.4% increase over 2024.
However, TRREB cautions that economic uncertainty, particularly trade disputes, could dampen consumer confidence. If the U.S. imposes tariffs on Canadian exports, demand for goods and services could decline, potentially leading to layoffs and reduced purchasing power. Aggressive interest rate cuts from the Bank of Canada may help offset these risks.
Buyer Sentiment Holding Steady
Polling conducted by Ipsos for TRREB suggests buyer confidence remains stable, with 28% of respondents likely and 9% very likely to buy a home in 2025—figures consistent with 2024 expectations. First-time buyers are expected to play a significant role in the market, particularly in the condominium segment, where prices may remain flat or trend downward.
Renters Weighing Homeownership
As housing affordability improves, more renters are considering making the transition to homeownership. According to the report, two-thirds of renters say they will seriously consider buying if rent continues to rise. At the same time, investors are expected to list more condominium units for rent, increasing the rental supply and keeping average rents below recent peaks.
Seller Sentiment and Price Forecast
On the selling side, 37% of respondents say they are likely to sell in 2025, while 14% are very likely—a sentiment similar to last year. TRREB forecasts that the average home price across all property types will reach $1,147,000, representing a moderate 2.6% increase over 2024. Single-family homes, including detached, semi-detached, and townhouses, are expected to see the most noticeable price growth.
Overall, 2025 is shaping up to be a more balanced market, with increased supply, stable buyer confidence, and moderating price growth, making it a promising year for those looking to enter the housing market.
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