Current State of the Real Estate Market

Market Overview : It is a Buyer’s Market

Do not be fooled by what anyone is saying to the contrary, it is a buyer’s market without a doubt in the GTA and to be frank across most parts of the country as well (Edmonton being a noticeable exception).

Inventory has significantly increased in the GTA while at the same time sales have dropped.  This has resulted in marginal decreases in prices for the last several months.  You would think that prices would drop more dramatically however they have stayed relatively stable.

Price Trends: Regional Variations

Despite the cooling market, average home prices in the GTA have remained relatively stable.  However, regional disparities are evident:

• Oakville: Average sale price decreased 9.1% to $1,447,106.
• Mississauga : Average sale price decreased 5% to $1,040,979.
• Vaughan : Average sale price was nearly unchanged to $1,323,877.
• GTA: Average sale price at $1,120,879, down 3.8% year-over-year.

Economic Factors

One of the major contributors to the current buyer’s market are the threats and impacts of the tariffs. The United States already implemented 25% tariffs on major industries such steel, aluminum and auto makers to name a few.  They are now considering of increasing these tarrifs to 50%, this remains to be seen but nonetheless this is something that will have ripple effects in multiple industries.  The uncertainty around the economy has provided some folks who were on the sideline waiting to jump back in late last year on pause.  

This has resulted in New Home Sales to decrease 72% year over year.  What this normally does is that builders will tend to hold back new construction projects given the current climate which in turn causes minimal supply to be released.

Affordability Factors

The Bank of Canada (BoC) was set to cut the rate on June 4th 2025 however with a recent blip in the GDP for the country they will be paused.  This is a blow to affordability factors as some buyers were waiting for this cut to take place before seriously browsing the market.  Many economists and firms have already stated that affordability is the lowest it has been in decades and projections indicate this will not improve any time soon.  Lack of BoC cuts, coupled with trade tensions with our neighbours to the south has decreased affordability and dampened buyer confidence.

What does this all mean to Buyers and Sellers?

Looking ahead it is almost a certainty that the market will remain buyer friendly.  This does provide an opportunity for buyers to be able to browse the inventory with more options than ever before.  Prospective buyer’s should always remain cognizant of regional conditions when making decision based on real estate in the GTA and Ontario.

What this means for Sellers is that more than ever your home must stand out and above from the rest of the inventory to gain maximum exposure.  This will require a strategic approach, proper staging, decluttering, deep cleaning and marketing in order to gain the exposure your property deserves.  This also means that pricing your property appropriately is more important than ever before.  Long gone are the days automatic bidding wars, if you want your property to sell you’ll have to price it accordingly.  Pricing your home too high will let it linger on the market far too long giving buyers a reason not to visit.  From there usually this ends up being a price revision to a lower value and right there gives buyers and other agents the information that they need – they can low ball your home because they know you’ve been on the market too long.

Let’s Get in Touch

To help you navigate the market waters you should be consulting a real estate professional.  As your trusted resource for real estate needs I can help you navigate and provide the necessary guidance in order to provide a stress free, results oriented experience.  Let’s get in touch, let’s chat.