Over the past 12 months, average sold prices in Toronto Downtown have experienced notable fluctuations. While the January 2025 average price of $790,908 is very similar to the January 2024 figure of $787,686, the month-to-month variance indicates a volatile market environment. The HPI benchmark price stands at $742,300 with an HPI index of 298, and the percentage changes over one, three, five, and ten years show that recent short-term trends are negative (with a 1-year change of -6% and a 3-year change of -13%), though long-term metrics (5-year +6% and 10-year +77%) reveal underlying strength over extended periods. This mixed trend requires careful positioning when advising clients on price expectations, especially when comparing current listings with historical sale values during similar seasonal periods.

Analyzing supply and demand, recent data reveal subtle shifts: while active and new listings have remained relatively strong—with January 2025 showing 2060 active listings and 1354 new listings—the number of sold properties has decreased, evidenced by a sales-to-new listings ratio dropping to 19.87 and an increase in average days on market (DOM) to 43 days. These indicators, alongside a months of inventory figure of approximately 7.66, suggest that the market has recently tilted toward a buyer’s market, pointing to decreased urgency among buyers and a potential slowdown in sales momentum. Real estate agents can use these insights to advise sellers on the importance of competitive pricing and strategic timing, and guide buyers towards properties that have been on the market longer while negotiating from a position of strength.

Read the full article on: Toronto Regional Real Estate Board