Toronto Real Estate Update – June 2025: What Buyers, Renters, Sellers & Landlords Need to Know
Wondering what’s happening with the Toronto real estate market in June 2025? You’re not alone. Whether you’re a first-time homebuyer, a renter looking for relief, a landlord navigating new realities, or a seller wondering if it's the right time to list — this blog has everything you need to know.
Let’s break it down in simple terms.
Bank of Canada Interest Rates: Are They Finally Going Down?The Bank of Canada has paused interest rate hikes, holding steady at 2.75% in June 2025 — a big drop from the peak of 5% in 2023. Most experts believe we’ll see more rate cuts later in 2025, possibly bringing rates closer to 2% by year-end.
Why this matters: Lower rates mean cheaper mortgages and better affordability for buyers — especially first-time buyers who’ve been priced out for years.
What’s Happening With Toronto Home Prices?After years of climbing prices, Toronto’s real estate market has cooled down:
️ Condo prices are down 6–7% from last year
Detached homes are down about 5%
The overall average home price in Toronto sits around $1.145M, but entry-level homes and condos are much more affordable
Inventory is high — more listings, fewer sales, and homes are staying on the market longer
This shift means buyers have more power: you can now negotiate, include conditions, and even buy below asking price — something unheard of in recent years.
Rental Market Update: A Rare Break for Toronto RentersGood news if you're renting: Toronto rents have started to drop.
Average 1-bedroom rent: ~$2,224/month (down ~$400 from 2023 highs)
Vacancy rate is rising: now ~2.7%
Landlords are offering perks like a free month of rent or flexible move-in dates
Pro Tip: If your lease is ending, now is a great time to negotiate better terms or even upgrade to a larger space for less.
First-Time Buyers: Is Now the Time to Buy?Yes — if you’re financially ready. Here’s why:
Prices are down
Mortgage rates are starting to fall
There’s less competition and more choice
Sellers are more willing to negotiate
That said, homes are still expensive, and you’ll need a steady income and solid down payment. But with renters facing less pressure, many buyers finally have the time to shop smart.
️ Sellers: It's Not 2021 Anymore — Price RealisticallySellers need to adjust their expectations. It’s a buyer’s market, and homes are:
Taking longer to sell
Often selling below asking
Competing with a surge in new listings
However, the worst of the dip may be over. As interest rates drop, buyer demand is expected to pick up by fall 2025 — so if you can wait a few months, you might see stronger offers.
Landlords: A Shifting Rental LandscapeAfter years of rent increases, landlords are seeing:
Falling rental prices
Higher vacancies
Increased mortgage costs
To stay competitive, many landlords are offering incentives or choosing to sell off underperforming investment units. The key right now? Keep good tenants, manage costs, and ride out the market until rents stabilize again in 2026.
What’s Next for Summer and Fall 2025?Here’s what experts are forecasting:
More interest rate cuts Stabilizing home prices (small increases likely by fall) Flat or slightly falling rents More first-time buyers entering the market
This is the most balanced market Toronto has seen in years, offering opportunities for smart buyers, cautious sellers, and renters who need a break.
Final Thoughts: What Should You Do?First-time buyers: Get pre-approved and start watching — the window to buy at a discount may close by fall
Renters: Negotiate, shop around, and consider signing a longer lease while prices are down
Landlords: Revisit your pricing and tenant strategy — this is a time to hold and manage wisely
Sellers: If you can wait, consider listing later in 2025; if not, price aggressively and be flexible
Whether you're buying, selling, renting, or investing — I'm here to help you navigate the Toronto market with confidence.