Now that we are into the New Year, you are probably wondering how the housing market will fare.  

The Greater Toronto Area (GTA) housing market in 2025 is expected to see a gradual recovery, driven by
falling interest rates, increased demand, and economic stability[1][2]. However, it all depends on the type of
property you own. Essentially, there two distinct markets in the GTA: the low-rise housing market and the
condo market. The low-rise housing market, or detached homes, will perform well due to an inherent shortage
of these high-demand properties.

The condominium markets, whether pre-construction resale, will continue to experience pricing pressures. This is primarily
due to new condos entering the market upon completion and some investors selling off their units due lack of cash flow.
This will continue to increase the supply of condos. That being said, there is a buying opportunity for those willing to
wait out the condo slump.

Here are some key points:

1. Interest Rates and Economic Recovery: Anticipated interest rate cuts are expected to create a
more favorable borrowing environment, boosting home sales[1]. The Canadian Real Estate
Association (CREA) projects a 6.6% increase in national home sales[1].

2. Housing Affordability and Supply: Despite the positive outlook, affordability remains a
challenge due to rising construction costs and longer approval times for developments[1].

3. Market Dynamics: Toronto and Mississauga are poised for notable growth. Toronto's condo
market, in particular, is expected to bounce back as borrowing costs decline[1]. Mississauga
continues to attract young professionals and families due to its urban amenities and proximity
to transit hubs[1].

4. Sales and Prices: Recent trends show a significant increase in home sales and a slight uptick in
average selling prices[2]. This growth is expected to continue as buyers take advantage of lower
mortgage rates[2].

5. Trump Tariffs Plan: With Trump's victory in November 2024, many experts are concerned about
the potential tariffs he plans to implement. This will create uncertainty in the markets because the
size of the tariffs and their impact on the Canadian economy are unknown. Ontario is a major hub
for manufacturing, and there is a belief that any tariff, regardless of its size, will negatively impact
the economy.

Overall, while challenges like affordability and supply shortages persist, the GTA housing market is set
for a positive trajectory in 2025.

Are you considering buying or selling a property in the GTA?

References
[1] The GTA Real Estate Market in 2025: Trends and Predictions
[2] What The GTA Housing Market Can Expect In 2025 - storeys.com