Real Estate Market January 2025

11 Feb Real Estate Market January 2025

Your January 2025 real estate market update is here! Covering Toronto, Oakville, Burlington, Hamilton and the surrounding areas.

Highlights of the real estate market from TREBB and RAHB

“The Toronto Regional Real Estate Board’s (TRREB) Market Outlook and Year in Review report reveals that a well-supplied housing market will keep average annual home price growth at the rate inflation, with the average selling price increasing moderately in the Greater Toronto Area (GTA) over the course of the year.

“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. 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,” said TRREB Chief Market Analyst Jason Mercer.

For 2025, TRREB forecasts: – A total of 76,000 home sales in 2025, up by 12.4% over 2024. Lower borrowing costs coupled with ample supply will improve affordability and prompt more buyers to move off the sidelines. – The average selling price to reach $1,147,000, up by 2.6% over 2024, for all home types combined. Price growth will be stronger for single-family homes, as compared to the well-supplied condo apartment market.

The year started off with GTA REALTORS® reporting 3,847 home sales through TRREB’s MLS® System in January 2025 – down by 7.9% compared to the same period last year. New listings in the MLS® System amounted to 12,392 – up by 48.6% year-over-year. On a seasonally adjusted basis, January sales were up month-over-month compared to December 2024. The MLS® Home Price Index Composite benchmark was up by 0.44% year-over year in January 2025. The average selling price, at $1,040,994, was up by 1.5% compared to the January 2024.”

Over in the Hamilton-Burlington area: Overall, sales, new listings and inventory levels all trended down through the beginning of 2025, with figures remaining below long-term trends. While all areas in the region saw a dip in sales, Burlington, reported a more significant decline than Hamilton.

While we are seeing some short-term challenges in the market, the rise in inventory and the slight increase in benchmark prices reflect a market that remains adaptable,” says Nicolas von Bredow, Cornerstone spokesperson for the Hamilton-Burlington market area. “As we move further into 2025, we remain optimistic. Buyers and sellers are taking a more measured approach, but the strength of our housing market, particularly in areas like Haldimand County, shows there are opportunities in every corner of the region.”

Despite recent interest rate cuts by the Bank of Canada, the expected impact on mortgage lending rates has been limited. Heightened economic risks are continuing to keep consumer confidence in check, which has resulted in a cautious start to the year and has dampened demand.

However, new listings continue to rise relative to sales, causing the sales-to-new-listings ratio to fall to 40%, marking the lowest January start since 2011. This increase in supply is contributing to inventory gains and pushing months of supply above four months. Though the uptick in new inventory has prevented any significant movement in benchmark prices, the market has shown some variation. As of January, the regional benchmark price was $819,500—nearly 1% higher than last year. However, this overall increase has been primarily driven by growth in detached homes, semi-detached units, and row properties. Apartment-style units have experienced declines in pricing, reflecting the ongoing market shifts.”

Questions about buying or selling? Reach out anytime, I’d be happy to discuss the market with you!

All the latest home prices and statistics by property type and city below!

Sources for Real Estate Market Update for January 2025 : Toronto Regional Real Estate Board and REALTORS® Association of Hamilton-Burlington