Every market tells a story. Whether you're buying, selling, or investing, understanding the shift empowers your next move. The A.B.R.E Team, led by Ali Bolourchi, Broker at eXp Realty, brings market clarity and strategic guidance across the GTA.
📈 Market Overview – May 2025 The Greater Toronto Area housing market continued to evolve this month, showing signs of improved affordability and increased inventory, offering homebuyers greater choice and negotiating power.
🔍 Key Highlights:
🏘️ Property Type Breakdown – GTA
🗺️ Regional Trends Snapshot
🧠 Insights for Buyers More Inventory = More Choice: With active listings up by 41.5% year-over-year, homebuyers have significantly more properties to choose from, reducing bidding wars and increasing leverage. Pricing Corrections = Better Value: Average and benchmark prices have seen declines, indicating a shift towards a more balanced market where buyers might find better value.
Rate Outlook = Monitor mortgage trends: The Bank of Canada's overnight rate is 2.8% (May 2025), and Prime Rate is 5.0%. While mortgage rates remain stable, potential future rate cuts could further improve affordability. Pro Tip: Work with a REALTOR® familiar with your ideal neighbourhood and housing type. Their expertise is crucial in navigating increased inventory and negotiating power effectively.
🛠️ Advice for Sellers Price Right: Reflect today’s market, not yesterday’s peak. With increased inventory, competitive and realistic pricing is paramount to attracting buyers. Average days on market have increased (Avg. LDOM 25, Avg. PDOM 39), suggesting properties are taking longer to sell.
Stage to Stand Out: Position your property as move-in ready. In a market with more choice, well-presented homes command more attention and can fetch better offers. Be Flexible: Closing dates, conditions, and terms matter more than ever. Buyers are in a stronger position to request favorable terms, so flexibility can make your property more appealing.
💬 Economic & Policy Notes The Bank of Canada's overnight rate remains at 2.8% and the Prime Rate at 5.0% as of May 2025. Inflation (Yr./Yr. CPI Growth) was 1.7% in April 2025, down from earlier periods, which could signal room for future rate adjustments.
Toronto Employment Growth in April 2025 was 2.8% ▲, but the Unemployment Rate (SA) for April 2025 was 8.6% ▼. Real GDP Growth in Q1 2025 was 2.2% ▲.
Jason Mercer, TRREB's Chief Information Officer, noted, “Home ownership costs are more affordable this year compared to last. Average selling prices are lower, and so too are borrowing costs. All else being equal, sales should be up relative to 2024. The issue is a lack of economic confidence. Once households are convinced that trade stability with the United States will be established and/or real options to mitigate our reliance on the United States exist, home sales will pick up. Further cuts in borrowing costs would also be welcome news to homebuyers.”
John DiMichele, TRREB CEO, added, “With the federal government's housing commitments reiterated in the Throne Speech, we now need concrete actions that will restore housing affordability across the GTA and the rest of Canada. This includes lowering high housing taxes and fees, embracing innovative construction technologies, and streamlining processes to reignite the construction of homes. Home construction is associated with huge economic benefits that would help mitigate the negative impact of ongoing trade disputes. Additionally, with inflation remaining low, a rate cut would be a welcome move-particularly for first-time buyers and those renewing their mortgages.”
🤝 Your Strategic Real Estate Partner Whether you’re upgrading, downsizing, investing, or entering the market for the first time, expert insight is essential.
The A.B.R.E Team, led by Ali Bolourchi, is here to help you move wisely in every cycle.
📍 Serving: Toronto, Vaughan, Markham, Richmond Hill, Aurora, Newmarket, Barrie, Innisfil, Keswick, and beyond. 📞 Let’s Talk Strategy
📞 CALL US: 416-886-2000
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