If you own a home in the Greater Toronto Area and are considering selling, you’ve likely noticed that the market is noticeably cooler and slower than in previous years. Homes aren’t flying off the shelf overnight anymore, and buyers have more negotiating power, thanks to rising inventory and economic uncertainty. Although the Toronto Regional Real Estate Board (TRREB) forecasts moderate growth in sales for 2025, the overall picture is much different from the red-hot markets of 2021 and early 2022.
Should you list your home immediately, or hold off until conditions improve? The answer depends heavily on your personal situation and tolerance for economic risk. While some owners may find themselves needing to move quickly for pressing reasons—such as a job relocation or a change in family circumstances—others may be better off waiting for more clarity on global and local economic factors.
1. A Buyer’s Market: Cooler Conditions and More Negotiations
Recent data from TRREB indicates that new listings have been on the rise, giving buyers more choice and leverage when making offers. This dynamic means sellers need to keep expectations in check:
• Longer Listing Times: Days on market have been trending upward, as buyers take their time to compare properties and negotiate firmly.
• Realistic Pricing Is Key: Overpricing can lead to a property sitting on the market longer—something that can weaken your negotiating position.
• Modest Price Gains: While some analysts predict slight price upticks
(often in the 2–3% range) for the coming year, there’s no guarantee that waiting will significantly boost your final sale price. Market forecasts remain cautious, especially given ongoing uncertainty.
Given these factors, it’s clear the GTA real estate scene in 2025 is more favorable to first-time buyers entering at lower price points and with flexible timelines, rather than homeowners looking to “cash out” or move merely by preference. Sellers should expect negotiations, possible concessions, and the chance that their home could remain on the market longer than anticipated.
2. Economic Uncertainties: US/Canada Tariff War and More
One of the biggest wildcards influencing GTA real estate is economic uncertainty, including the looming US/Canada tariff war. Both domestic and global factors—such as rising trade tensions, inflation trends, and central bank policies—directly impact consumer confidence. Here’s why that matters for sellers:
• Potential Recession Fears: Some economists warn that persistent global trade disputes could hamper economic growth. If confidence dips, buyers might hold off, further cooling home demand and potentially affecting prices.
• Interest Rate Easing: Although mortgage rates have eased from their peak, the Bank of Canada’s moves largely depend on inflation data and overall economic health. If a trade war intensifies or a recession looms, rates might drop further—but buyer sentiment might weaken as well, causing more caution in purchase decisions.
• Uncertain Timelines: There is no clear end date for macroeconomic conflicts. Many homeowners prefer to wait until they see signs of stability—like a resolution in the tariff tensions, more predictable policy decisions, or a stronger local economy—before making a major move.
Given these unresolved factors, if you can remain in your current home without financial strain, it may be advisable to wait for more clarity before listing. That said, for those who must move (due to work, life transitions, or personal reasons), the market is still active, especially for well-priced properties in desirable neighborhoods.
3. Rising Inventory: More Competition for Sellers
Inventory across various GTA neighborhoods has been increasing—condos and townhouses, in particular, have seen notable supply growth. When more listings flood the market:
• Buyers Gain Leverage: With additional options, buyers can afford to be more selective. This shift in power is why pricing competitively and ensuring your property stands out (through staging, updates, or professional marketing) is crucial.
• Longer Selling Horizon: Sellers who remember the boom times of 2021–2022 might anticipate quick, multiple offers. Today, it’s common for listings to linger and for offers to come in below the asking price, reflecting buyers’ confidence that they can negotiate.
If your motivation to sell is purely elective—such as upsizing for a larger kitchen or moving to a different neighborhood for a lifestyle change—the increased competition suggests you might want to wait until market conditions improve or until you have a more pressing need.
4. When Selling Makes Sense Right Now
Despite the challenges, there are scenarios where selling sooner rather than later may still be the better course of action:
1. Pressing Family or Work Situations: If your job is relocating you or family needs require a move, waiting indefinitely might cause more stress than it’s worth.
2. Financial Obligations: If carrying costs have become unmanageable due to higher interest rates or personal circumstances, downsizing or selling to reduce debt can be a prudent step.
3. Property-Specific Advantages: Certain properties—like a prime detached home in a top school district or a fully renovated condo with unique features—can still attract solid offers. Even in a cooler market, these rare gems often appeal to motivated buyers.
In any of these cases, strategic pricing and marketing will be your best tools to secure a satisfactory deal in a slower market. Setting a realistic list price that reflects current conditions can help generate interest, rather than letting your property languish with minimal showings.
5. Expert Advice: Monitor the Economic Indicators
For those who can afford to bide their time, the best approach is to closely watch economic indicators and local market data:
• Tariff Resolutions: Any signs of easing trade tensions between the US and Canada could bolster consumer confidence.
• Bank of Canada Moves: Keep an eye on rate announcements—further downward revisions might entice new buyers, potentially boosting market activity.
• Seasonal Shifts: Historically, spring and early fall see a pickup in buyer interest. However, that also brings more listings, so the competitive edge may not be as strong as you’d expect.
Until we see these factors stabilize, it may be wiser to remain in your current home, especially if your motivation to sell is not urgent.
Selling in 2025 Requires Realism and Caution
In a market that’s decidedly tilted in favor of buyers, patience, competitive pricing, and realistic expectations are crucial if you choose to sell. Otherwise, homeowners who are comfortable waiting—particularly those without a pressing need to relocate—might consider riding out the economic uncertainties until clearer signals emerge.
Personal Takeaway: With so much up in the air economically (tariff disputes, potential slowdowns), most current owners should stay put unless circumstances force their hand. The conditions strongly favor first-time buyers right now, not sellers who just want a change of scenery. If you do list your home, be prepared for tough competition from rising inventory and for negotiations with cautious buyers seeking a deal.
If you’re on the fence about listing your property, don’t make the decision blindly. Contact me for a personalized consultation. I can help you evaluate your home’s current value, your local neighborhood trends, and how broader market forces—like the US/Canada tariff war—might affect your sale. Together, we’ll find the best strategy for your unique situation, ensuring you make a move that aligns with your goals, your finances, and the market reality. Reach out today to start the conversation!
This article is based on publicly available market data and expert insights from TRREB, as well as current economic reports on interest rate trends and trade tensions. It reflects the author’s professional opinion and experience in the GTA real estate landscape.
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