Real Estate Forecast 2025

Real Estate Forecast For The GTA in 2025: Home Prices See Modest Gains, Challenges Remain

The Greater Toronto Area (GTA) housing market showed a slight increase in home prices in the fourth quarter of 2024, despite some fluctuations. The aggregate price of a home in the region rose by 2.3% year-over-year to $1,149,300. However, on a quarterly basis, prices experienced a modest dip of 0.6%. Keep reading to for The Baird Team’s  real estate forecast for 2025:

Breaking Down the Market: Single-Family Homes vs. Condominiums

• Single-Family Detached Homes
  The median price of a single-family detached home saw a healthy increase of 3.9% year-over-year, reaching $1,427,500 by the end of 2024.
• Condominiums
  On the other hand, condominium prices took a slight dip, with the median price falling 0.7% to $714,600.

Market Insights from Royal LePage

There was an uptick in sales activity toward the end of 2024, with more showings and appointments overall. This trend is expected to continue into 2025. Buyers, including first-time homebuyers, will likely experience improved market conditions.

With declining lending rates and changes to mortgage regulations, this should give buyers more flexibility in their search for the right home. Multiple-offer scenarios may see a return in 2025. However, the intense bidding wars that dominated previous peak markets won’t as common. Multiple offers are excepted in cases where properties are priced below market value, but bidding wars will be more tame.

Condominium sales continue to stagnate, while lower priced freehold homes and single family detached homes will dominate.

Factors Affecting the Market

There are several external factors that The Baird Team expect could influence consumer confidence and market activity. Political instability in Ottawa, the new incoming U.S. government, and a weakening Canadian dollar are all potential headwinds. While improvements in market conditions are expected, a sudden surge in demand or a drastic spike in sales isn’t likely. Instead, a gradual increase in market activity is anticipated, which should benefit both buyers and sellers.

Looking Ahead: Royal LePage’s 2025 Forecast

Looking forward, Royal LePage forecasts a 5.0% increase in the aggregate price of a home in the GTA by the fourth quarter of 2025, compared to the same period in 2024. The Baird Team anticipates a more traditional real estate market in 2025 compared to previous years. If you are looking to buy or sell your home in Durham Region, contact The Baird Team with Royal LePage Frank today. The Baird Real Estate Team serves Courtice, Bowmanville, Newcastle, Oshawa, Whitby and the surrounding areas.

Click HERE to view the Royal LePage market survey forecast for 2025.