GTA Market Off to a Slow Start in January 2025
The Greater Toronto Area (GTA) real estate market kicked off 2025 with a bit of a slow start. Home sales in January were down by 7.9% compared to the same month last year, while the average home selling price edged up by 1.5% to $1,040,994. Meanwhile, new listings surged by a staggering 48.6%, providing buyers with a much larger selection of homes and condos to choose from.
GTA Market Snapshot – January 2025 vs. January 2024
| Jan 2025 | Change | Jan 2024 | |
|---|---|---|---|
| Home Sales | 3,847 | Down 7.9% | 4,177 |
| Average Price | $1,040,994 | Up 1.5% | $1,025,226 |
| New Listings | 12,392 | Up 48.6% | 8,337 |
Market Trends & Absorption Rates
A key market indicator, months of inventory, is currently at 3.2 months across all property types, which still signals a seller’s market. However, the absorption rate, which measures how quickly homes are selling, sits at 31%, reinforcing that sellers still hold the advantage overall.
For context:
- An absorption rate above 20% signals a seller’s market
- An absorption rate below 15% signals a buyer’s market
While the overall market leans in favour of sellers, condos tell a different story. With six months of inventory and an absorption rate of 15%, GTA condos are in a buyer’s market. This means buyers have more choices, whether in resale units, new builds, or assignment sales, creating opportunities for negotiation on both price and terms.
What’s Performing Best in the Market?
One of the strongest-performing segments right now is freehold townhomes and semi-detached homes. These properties, especially those priced around $1 million or slightly under, are in high demand—particularly in Mississauga, Toronto, and across the GTA.
- The average freehold townhouse price in Mississauga: $990,000
- The average semi-detached home price in Mississauga: $1,047,000
That’s nearly a $60,000 difference to move from a freehold townhouse to a semi!
Who’s Buying?
Many of these buyers are first-time buyers and move-up buyers transitioning from condos to freehold homes. We recently sold a freehold townhouse in central Mississauga that was listed at $999,000. It received six offers and sold over asking in just five days! Most of the buyers making offers were first-time homebuyers, who had to increase their bids and improve their financing conditions to compete.
On the flip side, our client then purchased a condo in North York that had been sitting on the market for over four months. We negotiated the price down below asking, securing it for $80,000 less than two similar units that had sold just months prior.
This was a win-win scenario—they sold high and bought low, which is rare in real estate!
Advice for Buyers and Sellers
-
For Condo Sellers:
- Expect longer days on market (currently 48 days in Mississauga and 43 days in Toronto)
- Price competitively, stage your home well, and be patient
- Sell before buying if you’re planning to move up to a house
-
For Townhouse & Semi-Detached Sellers:
- Take advantage of high demand—this market segment is the most competitive right now
- Expect multiple offers if priced well
-
For Buyers Moving to Detached Homes:
- Detached home prices haven’t seen as much competition, making this a great opportunity to upsize
- With more inventory available, there’s more room for negotiation
The GTA real estate market may have started 2025 on a slower note in terms of sales volume, but increased inventory and steady pricing suggest opportunities for both buyers and sellers. If you’re thinking about making a move this year, the right strategy can make all the difference.
Are you planning to buy or sell in 2025? Let’s connect to discuss how to navigate the market to your advantage!