January Toronto Real Estate Update

January kicked off with a bang in the Toronto real estate world. The holidays were barely over before sellers & buyers started getting back in the game—and with interest rates on a downward trend, the timing couldn't be better. So, let’s break it all down: what’s happening with interest rates, what’s moving in the market, and whether now is the time to buy or not (spoiler: it is).

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Interest Rates in 2025: The Drop Has Begun

First things first, Interest Rates. The Bank of Canada did what many expected and cut the overnight rate in January by 0.25%. The big question: will this continue?

According to top analysts, the answer is yes—expect more cuts in the first three quarters of 2025. Some even predict we could see the policy rate hit 1.5% by October if the trend continues.

1.5%?!? That would certainly spice things up, and I'm all for it! The BoC is making big moves, and if they continue they will have an impact.

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How Did Toronto’s Market Perform in January?

Toronto’s market started 2025 on a strong note. Buyers were back, rates were dropping, and the inventory levels created a perfect mix of opportunity and choice.

This winter is shaping up to be one of the best times to buy in Toronto in recent memory. There’s a solid selection of homes, lower rates coming, and still very little competition. If you’re thinking about buying, you might want to do it before spring heats things up.

Now, let’s break it down by property type and for this blog, we are going to do a full year to year comparison from January 2024 to January 2025 :

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Detached Homes - January 2024-2025

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‍The Numbers:

‍✅ New listings: Up 50.9% (yes, really!)

✅ Quantity sold: Up 31.8%

‍✅ Average price: Down 1%

‍✅ Days on market: Down from 37 to 29 days

Detached home sales are showing signs of stability, which is exactly what we want to see. Buyers are out there, homes are selling, and the inventory is moving from a buyer’s market toward a balanced one.

We’re sitting at 5 months of inventory for detached homes. Once that dips closer to 4, things will start shifting more in favour of sellers.

But right now? Buyers still have the edge.

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‍‍‍Semi-Detached & TownHomes - January 2024-2025

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The Numbers:

‍✅ New listings: Up 41.8%

‍✅ Quantity sold: Up 28.4%

‍✅ Average price: Down 1%

‍✅ Days on market: Down from 33 to 23 days

This segment is one to watch closely. Inventory is tightening fast, and we’re creeping toward seller’s market territory. Right now, we have just 2.8 months of inventory, meaning things could heat up very quickly.

If you’re in the market for a semi, don’t wait too long. With spring around the corner, this segment is likely to get competitive. My advice?

‍Lock in a property before bidding wars return (in popular areas, they already have.

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‍Toronto Condos – January 2024-2025

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The Numbers:

‍✅ New listings: Up 43.4%

‍✅ Quantity sold: Down 19.9%

‍✅ Average price: Up 0.4%

‍✅ Days on market: Up from 42 to 43 days

While condo sales were slower in January, pricing has stabilized. The real story here? First-time buyers have never had a better opportunity.

With 8 months of inventory, this is a buyer’s market—plain and simple. Sellers are willing to negotiate, and there’s a ton of choice. If you’re a renter looking to buy, this is your moment.

‍Falling rates + high inventory + government incentives = an opportunity that doesn’t come around often.

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Final Thoughts: What Should You Do?

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✅ If you’re a buyer, this is a rare window of opportunity—especially in the condo and semi-detached segments.

Don’t wait until the spring rush.

✅ If you’re a seller, now’s the time to position your home properly. Pricing right and marketing well will get you ahead before the competition ramps up.

✅ If you’re on the fence, let’s chat. I can walk you through what’s happening and how to make the most of this market.

2025 is shaping up to be an exciting year for Toronto real estate. If you’re thinking about buying or selling, now’s the time to plan your next move! Let’s connect.

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You've read my personal opinion, but now here are the cold, hard facts.

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Please note that these statistics cover only the City of Toronto. Not Richmond Hill, Not Mississauga, Not Vaughan, etc. If you would like to know what's happening in another area in GTA, please reach out and let me know. I'm happy to chat!  

‍Want to look on your own and see the numbers for yourself? Click Here to view the official statistics that every Real Estate gets sent from TREB and uses for their market updates. These are the exact numbers I use for my Toronto updates and if you want, I can prepare an update as detailed as this blog update for your city, neighbourhood and even street.

Don't be shy, reach out and just ask!

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So without further ado, let's take a look at the January Statistics with the charts and breakdown below ⤵️

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Last month in lieu of the lack of new listings, I wrote this "December is not historically a big month for new listings, quite the opposite actually. As mentioned previously, this is the status quo for November Real Estate.   Also, with new buyer incentives coming in Mid December (interest rate drop, insurance cap increase,etc.), I suspect many sellers have been advised to wait and see the effect and that there a potential for a strong start to 2025. Personally if I was thinking of selling my home, I would be thinking the exact same way and preparing to list early January." .

This was an easy prediction so I'll only do a slight humble brag... I kinda know what I'm talking about sometimes :)

Looking at each property type specifically,

Detached homes went from 391 new listings to 1054, a +91.76% increase.

Semi-Detached went from 73 to 246, a +45.38% decrease.

Freehold Townhomes went from 39 to 114, a +98.04% increase.

Condo Townhomes went from 133 to 318, a +82.04% increase.

Condo Apartments went from 1131 to 2972, a +89.74% decrease.

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With an explosion of new listings, it was only natural for the active listings to grow

Specifically,

Detached homes went from 1291 to 1450, a +11.6% increase.

Semi-Detached went from 248 to 268 a +7.75% increase.

Freehold Townhomes went from 112 to 134, a +17.89% increase.

Condo Townhomes went from 459 to 477, a +3.85% increase.

Condo Apartments went from 4075 to 4540, a +10.72% increase.

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Well, well, well, more listings (supply) to fuel the demand of the buyers and what do you know? A boost in ALL property types in Toronto. Savvy buyers are taking advantage of the current market but already we are seeing offer nights for virtually any decent property, and these offer nights are bringing numerous bids with buyers willing to waive conditions like a home inspection or financing to secure the deal.  With interest rates continuing to drop, supply matching demand, are we seeing a shift in the market? Time will tell, but with the little evidence we have for the first month of 2025, there is an air of positivity that a rebound is happening.

Looking at each property type and it's sale from last month to this,

Detached homes went from 309 to 351, a +12.73% increase.

Semi-Detached went from 113 to 132, a +15.51% increase.

Freehold Townhomes went from 43 to 34, a +23.38% increase.

Condo Townhomes went from 93 to 113, a +19.42% increase.

Condo Apartments went from 606 to 747, a +20.84% decrease.

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Whoa! Lots of sales but what is with the prices??? Well, it's a balanced market my friends and yes, there is still room to negotiate on some homes. Every seller is in a totally unique situation so it's impossible to know who is flexible on price, and what their true motivations for selling are.

Also, with so many new listings (aka competition for sellers) buyers had more to pick from, and can potentially use that as leverage during negotiations. You never know unless you actually submit and offer and see for yourself. The market is open right now, and there are opportunities.

Focusing on the Avg. Price,

Detached homes went from  $1,624,500 to $1,579,386, a -2.82% decrease.

Semi-Detached went from $1,302,024 to a -12.01% decrease.

Freehold Townhomes went from $1,111,191 to $1,182,597, a +6.23% increase

Condo Townhomes went from  $803,088 to $869,468, a +7.94% increase

Condo Apartments went from  $719,774 to $691,039, a -4.07% decrease

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Detached homes got off to a flying start in 2025 and maybe the increase in the mortgage insurance cap had the affect many were predicting? But this soon? Considering that Detached homes are always the most popular and in demand (and expensive) it makes total sense that some savvy buyers are taking advantage of the current market.

I'm a little surprised Semi Detached are not lock step with Detached but that will happen soon enough, trust me. I'm already seeing very busy offer nights on good homes listed for one week.

Unfortunately, condos are still taking a while to sell and this will continue especially for any unit priced $800k or above.  

Looking at each property type :

Detached went from 40 to 32 days to sell (a -22% decrease).

Semi-Detached 30 to 34 days (a 12.5% increase).

Freehold Townhome 39 to 35 days (a -10.81% decrease).

Condo Townhomes 39 to 44 days (a 12.05% increase).

Condo Apartments 39 to 43 days (a 9.76% increase).

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Ok! That's it for now. Thanks for reading and have a great day! 👋 - Tyson CR

‍‍Want to know what the current value of your home is or what's going on in your neighbourhood?

Please feel free to reach out! I'm happy to prepare a completely free, no obligation custom market report just for you

If you or anyone is thinking of a move don’t be shy and reach out.  

After all, everyone’s individual situation requires an individual and unique strategy and plan.

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