GTA Real Estate Market Update – April 2025: Is the Market Slowing or Stabilizing?
April 2025 brought with it a noticeable cooling in the GTA real estate market, despite seasonal trends that typically favour increased activity. According to the Toronto Regional Real Estate Board’s (TRREB) latest Market Watch report, sales volume dropped significantly while average prices continued their downward adjustment.
This signals a market still searching for balance, where affordability concerns, interest rate sensitivity, and buyer hesitation continue to define the landscape.
Sales Activity Dips Despite Spring Rush
TRREB reported 5,601 home sales across the GTA real estate market in April 2025, marking a 23.3% decline year-over-year from April 2024. Even on a month-over-month basis, sales were slightly down, despite the arrival of the traditionally busy spring season.
What’s behind the slowdown? Buyers, it seems, are waiting for more favourable financial conditions. Many are hoping that interest rates — while stable for now — will trend downward in the coming months. Others are cautious due to economic uncertainty or are simply priced out of the market.
Price Trends Show Continued Adjustment
The average selling price in April was $1,107,463, down 4.1% compared to April 2024. This marks a continued correction from pandemic-era highs and suggests sellers are beginning to respond to buyer resistance.
Detached homes, once the dominant segment in the GTA real estate market, saw the most significant price drops, with a 5.7% year-over-year decline. The average price for a detached home now sits at $1,324,280, reflecting both affordability pressures and shifting preferences among buyers.
On the other end of the spectrum, condo apartments experienced the most dramatic year-over-year changes, with a 9.9% price drop and a staggering 30% decline in sales volume. Average condo prices now sit at $670,712, creating potential opportunity for first-time buyers or investors looking for entry points.
Townhouses fared slightly better, with only a 1.2% price decrease and relatively stable sales volume. This could signal that the middle market is where demand remains more resilient — particularly among growing families or down-sizers.
More Listings, But Longer Selling Times
While sales have slowed, new listings increased by 8.1% compared to last April, with over 18,300 properties entering the market in April 2025. This has led to a jump in active inventory, giving buyers more choice and negotiating power.
However, homes are taking longer to sell in the GTA real estate market. The average days on market (DOM) rose to 31 days, up 31.6% from a year ago. The property days on market (PDOM) is also up 22.2%, now sitting at 27 days. For sellers, this means the days of bidding wars and quick sales are no longer guaranteed — and pricing strategy has never been more important.
Interest Rates & Buyer Psychology Still Front and Center
One of the main factors behind today’s cautious buyer behavior is interest rate sensitivity. While the Bank of Canada overnight rate held steady at 2.8% in April, and inflation cooled slightly to 2.3%, mortgage rates remain elevated — with 5-year fixed rates hovering around 6.49%.
Buyers are doing the math, and many are choosing to delay purchases in hopes that borrowing costs will drop further later in 2025. At the same time, some sellers continue to price based on outdated expectations — creating a disconnect that’s slowing down negotiations and deals.
What This Means for Buyers and Sellers
For buyers in the GTA real estate market, especially those who are well-qualified and ready to act, the current market presents opportunity. With more listings, longer days on market, and softening prices, this is a moment to shop smart, negotiate firmly, and consider property types that may have been out of reach a year ago.
For sellers, this is a time for strategy over sentiment. Overpricing leads to stagnation. Homes that are priced realistically, staged well, and marketed effectively are still selling — but patience and flexibility are key.
Final Thoughts: A Market in Transition
The GTA real estate market isn’t crashing — it’s correcting. The April 2025 numbers point to a return to fundamentals: balanced conditions, informed decision-making, and long-term planning over short-term speculation.
Whether you’re buying, selling, or just tracking the market for your next move, staying informed is your edge.
For expert insights on home value, market trends, selling strategies, staging advice, negotiating tips and real estate videos, visit LifestyleVideos.com to browse properties, real estate videos, neighbourhoods insights, real estate market trends, and connect with local agents.
Curious how a Trade War could impact housing and interest rates? Watch our feature, Housing Prices & the Impact of a Trade War, streaming now!
