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The April 2025 stats are in, and the Toronto real estate market is showing some interesting developments. While seasonal patterns are holding true, with sales increasing from March to April, year-over-year metrics point to a market that’s still facing significant challenges despite improved affordability.
What Happened in April 2025?
April showed the expected seasonal uptick in activity, with sales increasing to 5,601 homes compared to March’s 5,011. However, comparing sales to April 2024, we see a substantial 23.3% decline in transactions. The average selling price across the GTA was $1,107,463, down 4.1% from April 2024.
What’s particularly notable is that despite lower borrowing costs compared to last year and increased inventory, buyers still aren’t returning to the market in full force. The combination of lower prices and mortgage rates has improved affordability, but many potential buyers appear to be taking a wait-and-see approach.
The Big Picture: 416 vs. 905
Looking at the regional breakdown, we can see some interesting patterns emerging:
| Region | Avg Price April 2025 | YoY Change | Sales April 2025 | YoY Change |
|---|---|---|---|---|
| City of Toronto | $1,144,977 | -2.6% | 2,129 | -30.4% |
| 905 Regions | $1,084,497 | -4.9% | 3,472 | -18.7% |
While the whole Greater Toronto Area (GTA) is experiencing lower sales volumes and price declines, the suburbs continue to see steeper drops in price, while the city is experiencing a sharper decline in sales volume.
City of Toronto: Central, East and West
When we examine Toronto’s sub-regions, the differences become even more pronounced:
| Area | Avg Price April 2025 | YoY Change | Sales April 2025 | YoY Change |
|---|---|---|---|---|
| Toronto West | $1,143,590 | -6.8% | 573 | -22.9% |
| Toronto Central | $1,189,441 | -1.7% | 1,012 | -29.8% |
| Toronto East | $1,063,722 | -3.9% | 544 | -21.7% |
Toronto Central, which had been showing the most resilience in previous months, is now experiencing the steepest drop in sales volume. However, price stability is still outperforming the other regions.
Property Types: The Divide Deepens
All markets are not created equal. Here’s what the numbers look like by property type:
| Property Type | Avg Price April 2025 | YoY Change | Sales April 2025 | YoY Change |
|---|---|---|---|---|
| Detached | $1,431,495 | -6.8% | 2,556 | -22.9% |
| Semi-Detached | $1,088,848 | -7.2% | 565 | -10.0% |
| Townhouse | $1,005,487 | -4.1% | 571 | -21.7% |
| Condo Apt | $678,048 | -6.1% | 1,430 | -30.4% |
Condo apartments, which typically serve as the entry point for first-time buyers, are seeing both significant price declines and the largest drop in sales volume. This suggests that even with improved affordability, first-time buyers remain hesitant to enter the market.
The Condo Market: Inventory Building
The condo market continues to face challenges, with inventory growing and prices under pressure:
| Condo Area | Avg Price April 2025 | YoY Change | Sales | YoY Change | Active Listings | YoY Change |
|---|---|---|---|---|---|---|
| Toronto Central | $748,843 | -7.3% | 626 | -32.3% | 4,416 | +42.4% |
| Toronto West | $655,064 | -6.8% | 181 | -32.5% | 1,206 | +42.8% |
| Toronto East | $593,873 | -6.1% | 118 | -23.9% | 705 | +17.5% |
With months of inventory for condos now sitting at 6.8 months in the GTA, the condo market remains favourable to buyers. The significant increase in active listings, especially in Toronto Central, creates more choices for buyers and additional pricing pressure for sellers.
How Long Are Properties Taking to Sell?
Properties continue to spend more time on the market compared to last year:
| Area/Property Type | Avg Listing DOM April 2025 | vs April 2024 | Total Avg DOM April 2025 | vs April 2024 |
|---|---|---|---|---|
| All TRREB Areas | 25 days | +3 days | 33 days | +5 days |
| City of Toronto | 24 days | +2 days | 33 days | +3 days |
| Detached Homes | 22 days | +3 days | 30 days | +6 days |
| Semi-Detached | 16 days | +1 day | 21 days | +2 days |
| Townhouses | 22 days | +3 days | 30 days | +5 days |
| Condos | 33 days | +3 days | 44 days | +6 days |
(Total Avg DOM represents the average total number of days on market for a home, including any re-listings and price changes.)
What’s Really Going On?
Several factors are influencing Toronto’s real estate market right now:
- Economic Uncertainty: In April, we had the federal election and continued tariff and trade drama with the US. That uncertainty continues to dampen consumer confidence.
- Improved Affordability: The combination of lower prices and reduced mortgage rates has made monthly payments more manageable for potential buyers, but this hasn’t been enough to overcome market hesitation.
- Elevated Inventory: The months of inventory has increased to 4.1 across all TRREB areas (up from 2.7 a year ago), giving buyers significantly more choice and negotiating power.
- Regional Variations: Performance continues to vary by location and property type, with some segments showing more resilience than others.
- Price Adjustments: While prices are declining year-over-year, the drops haven’t been dramatic enough to trigger a surge in buying activity. Many potential buyers may be waiting for further price corrections.
What This Means For You
For Condo Sellers: The condo market has clearly shifted in favour of buyers. Pricing needs to reflect current market realities: price below the last sale and below the competition. Presenting your property in its best light through professional staging, photography, and marketing has become essential, not optional.
For Buyers: This is the most favourable market for buyers in years. With increased inventory, less competition, lower interest rates and lower prices, buyers have more options and negotiating power. Trying to time the absolute bottom of the market is always risky – if you find a property that meets your needs at a price you can afford, it might be worth moving forward.
For Investors: The rental market remains strong, but higher carrying costs continue to challenge investment returns.
Looking Ahead
As we move into the typically active late spring and summer months, several factors could influence market dynamics:
- Interest Rate Trajectory: Further rate cuts from the Bank of Canada could boost market activity, though the impact may be muted if economic uncertainty persists.
- Trade Relations: Resolution of trade tensions with the United States could significantly improve consumer confidence and stimulate the market.
- Government Policies: Any new housing policies from the recently elected federal government could significantly impact market dynamics.
- Pent-up Demand: There is substantial pent-up demand building among would-be buyers who have been waiting on the sidelines. If confidence improves, we could see a more robust market recovery.
The Toronto market continues to adjust after years of exceptional growth, followed by rapid interest rate increases. This transition period creates challenges and opportunities, depending on your position in the market. As always, real estate remains local and statistics only tell part of the story.
