Price Trend Analysis: Over the past 12 months, Toronto’s real estate market has experienced moderate fluctuations with a modest year-over-year rise in average prices. The latest data for January 2025 indicates an average sold price of approximately $1,101,840, up from around $1,069,209 in January 2024. This gentle increase, set against longer-term figures showing notable appreciation over five and ten years (26% and 84% respectively), suggests that while long-term value has been robust, short-term price movements remain relatively subdued with some periods experiencing slight declines, as seen in a 4% drop six months ago and an 11% decline over three years.

Market Supply & Demand Analysis and Outlook: Recent monthly figures reveal a market where sales numbers, new listings, and active inventory are in constant motion. The gap between sold properties and the far greater number of active listings (with a current months-of-inventory around 5 and an average days-on-market of about 38 days in January 2025) indicates a slight cooling, where supply is beginning to outpace demand. Coupled with a relatively low sales-to-new-listings ratio (29.3% most recently), this suggests that while demand remains steady, buyers may have increased negotiating leverage. Moving forward, agents should advise clients to adopt competitive pricing strategies and be prepared for a market that, while showing positive long-term fundamentals, may exhibit intermittent slowdowns in activity and pressure on pricing in the near term.

Read the full article on: Toronto Regional Real Estate Board