Gradual increases in the average selling price of homes in the Greater Toronto Area (GTA) are expected over the course of 2025. A new market outlook from the Toronto Regional Real Estate Board (TRREB) predicts it will reach $1,147,000, up by 2.6 per cent from 2024.

Price growth is expected mainly in the single-family market, including townhomes.

“A growing number of homebuyers will take advantage of lower borrowing costs as we move toward the 2025 spring market, resulting in increased transactions and a moderate uptick in average selling prices in 2025,” said TRREB Chief Market Analyst Jason Mercer. “However, the positive impact of lower mortgage rates could be reduced, at least temporarily, by the negative impact of trade disruptions on the economy and consumer confidence.”

In the past, high borrowing costs were flagged as a key obstacle for home buyers. More recent Ipsos consumer polling revealed that 28 per cent of respondents are likely to buy a home this year. First-time buyers accounted for 42 per cent of prospective homebuyers. Although, intentions hinge on how high taxes continue increasing. Another 37 per cent of respondents desire to sell a home in 2025, with 14 per cent feeling more sure about this decision. TRREB predicts 76,000 home sales this year.

“As we look to the future, prioritizing housing diversity and supply remains paramount,” added TRREB President Elechia Barry-Sproule. “Encouraging the development of missing-middle housing—such as townhomes, duplexes, and low-rise multi-unit buildings—is critical to delivering a range of attainable options for individuals and families. Purpose-built rentals also play a vital role in ensuring everyone has access to a place they can call home.”