(From Data courtesy of TRREB and coordinated and compiled by Ken Mazurek of Sotheby’s International Realty Canada.)
As 2025 draws to a close, Downtown Toronto’s real estate market is in a unique place — marked by softening prices, increasing inventory, and improved affordability. While national and GTA-wide data suggest a market correction is underway, buyers in the 416 — particularly Downtown — are seeing one of the most favourable environments in years.
Let’s break it down.
Downtown Prices Dip, Creating a Window for Buyers
In the City of Toronto, the aggregate price of a home fell by 4.6% year-over-year, with:
-
Detached homes down 7.4% to $1,548,700
-
Condo apartments down 5.6% to $644,700
Source: Royal LePage Q3 2025 Report
The latest TRREB November 2025 stats show that prices continued to trend downward, with the average home price in the GTA falling to $1,039,458, a 6.4% drop year-over-year and 1.9% month-over-month.
Downtown condo prices, while down annually, have shown steady month-over-month growth since September, hinting that we may be near a price floor.
Sellers: The Market Has Shifted — Strategy Is Critical
Homes are staying on the market longer, and pricing too aggressively can result in your listing languishing for weeks or even months. In fact:
-
Average Days on Market (DOM) in Toronto is up nearly 10% to 34 days
-
Sales are down 15.8% year-over-year across the GTA
“Many buyers are searching, but they’re cautious — taking their time and waiting for the right deal,” notes Richard Silver of Silver Burtnick & Associates. “If you’re listing, working with a team that knows how to price and market effectively has never been more important.”
Buyer Power Has Returned — But For How Long?
There are currently 24,549 active listings in the GTA — up 16.8% year-over-year, giving buyers ample choice and negotiating power.
Yet, inventory is already starting to decline heading into December — a seasonal norm that could tighten conditions in early 2026.
This is compounded by improving affordability:
-
The Bank of Canada cut its overnight lending rate to 2.5% in September
-
Mortgage rates in the 3% range are becoming more common again
-
Condo apartments remain the most affordable option in the urban core
“We’re likely at the most affordable window Downtown buyers will see for the next 3 to 5 years,” says Jim Burtnick. “If you’re thinking of getting into the market or upgrading, this is a time worth exploring.”
Looking Ahead to 2026: What’s Next?
Royal LePage is forecasting a further 3.0% price decline in Q4 2025 for the GTA, before a potential rebound in the spring. This is expected to be supported by:
-
Continued rate cuts in early 2026
-
A shift back to in-office work, increasing demand in the Downtown core
-
A slowing pipeline of new housing construction
Our Advice for December 2025:
📌 For Buyers:
-
The market is more negotiable than it’s been in years.
-
Take advantage of high inventory and low competition — especially in the condo segment.
-
Start early. Inventory may tighten in Q1 2026.
📌 For Sellers:
-
Be strategic: Pricing is everything in today’s market.
-
Consider listing early in 2026 to capture the anticipated spring surge.
-
Work with professionals who can market your property with impact—through video, staging, and digital visibility.
Your Next Step Starts Here
Whether you’re buying or selling in Downtown Toronto, the market has shifted — and Silver Burtnick & Associates are here to guide you through it with clarity and confidence.
Let’s talk strategy today and help you plan your 2026 move smartly.
📍 Serving Toronto with Sotheby’s International Realty Canada
🔗 Visit us at www.Torontoism.com
