Why 2025 Might Be the Sweet Spot for First-Time Buyers and Renters in Toronto
You ever feel like you’ve been waiting forever for the “right time” to get into the market—but it just keeps moving?
Well, here’s the thing: 2025 might actually be it.
The Toronto real estate market has finally quieted down, largely due to the ripple effects of high interest rates throughout 2023, inflation pressures, and broader economic uncertainty. Buyers pulled back, sellers hesitated, and the frantic pace of previous years finally cooled.. No more frenzied bidding wars, no more panic over rising interest rates. For once, buyers and renters actually have options—and time.
What’s Happening Right Now:
Slowest sales in 20+ years: According to TRREB, 2023 marked the slowest year for Toronto home sales since 2000. That means fewer bidding wars and more negotiating room.
Prices are flat or slightly down: Especially in condos. Freeholds are holding, but without the frenzy. A good moment to buy without pressure.
Rents are easing: More inventory means more time to shop around and less competition. Renters finally have leverage again.
Mortgage rates are cooling: The Bank of Canada has started to lower interest rates. Fixed rates are dipping into the low 4% range.
Rent vs Buy: The gap is shrinking: If you’re paying $2,800+ in rent, you’re already in mortgage territory. And with prices softening and rates coming down, it’s worth running the numbers.
Big election promises: Both major parties are pledging housing reforms.
Liberals propose a federal housing agency and rapid homebuilding.
Conservatives suggest capital gains tax exemptions when reinvesting in Canadian real estate.
Both aim to improve affordability—though only time will tell what gets implemented.
So… Should You Make a Move?
If you’ve got a steady job, some savings, and you’re planning to stick around for the next few years, 2025 could be the moment to step in.
Experts expect rates to fall further, with a bounce-back in buyer activity later in the year. Waiting could mean paying more down the line.
Want help running the numbers or weighing your options? Let’s talk.