The Buyer's Market is Here: Why 2025 Could Be Your Year to Buy in Ontario

TL;DR: Ontario's housing market has shifted dramatically in favor of buyers, with increased inventory, more negotiating power, and stabilizing prices. If you've been waiting on the sidelines, this could be your moment.

After years of intense bidding wars and soaring prices, Ontario's real estate market has undergone a significant transformation. For the first time in years, we're seeing genuine buyer's market conditions across much of the province—and that's creating opportunities that haven't existed since before the pandemic.

What Exactly is a Buyer's Market?

A buyer's market occurs when there are more homes for sale than there are buyers actively purchasing. An SNLR under 40% suggests a buyer's market in which buyers have the upper hand and more negotiating power, and Ontario is the only province to be in a buyer's market during May 2025 with a sales-to-new-listings ratio of just 34%.

This means buyers now have:

• More choices and inventory to consider
• Greater negotiating power on price and conditions
• Time to make thoughtful decisions without pressure
• The ability to include protective conditions in offers

The Numbers Tell the Story

The market shift is unmistakable when you look at the data:

Inventory Surge: At the end of April 2025, active listings reached approximately 66,952 units - the highest April level in over a decade and 53% above the 10-year average for April

Extended Market Time: The 4.7 months of inventory in April 2025 is up significantly from the level seen in April 2024 (2.9 months) and well above the long-run average of 2.4 months for this time of year

Price Adjustments: While not dramatic, prices are moderating. The average Ontario home price for April 2025 was $859,645, a 0.1% decrease from March 2025's $860,545, down 4.5% compared to April 2024

What This Means for Different Markets

GTA and Toronto

The Greater Toronto Area is experiencing the most pronounced buyer's market conditions. The GTA's SNLR was 29%, in buyer's market territory, giving buyers significant leverage.

Mississauga and Vaughan

Suburban areas such as Mississauga and Brampton are experiencing larger year-over-year price declines, with Mississauga average home prices down 11.7% year-over-year, while Vaughan home prices are up 3.7% year-over-year to $1,327,790

Milton and Surrounding Areas

Smaller markets are showing more stability, offering potential value for buyers looking beyond the core GTA.

Strategies for Today's Buyers

1. Get Your Financing in Order

With Today's Lowest mortgage rate in Ontario is 3.94% for 5-Year Fixed, rates have come down from their peaks. Get pre-approved to understand your buying power and show sellers you're serious.

2. Don't Rush—But Don't Wait Forever

In 2025, we expect a rebound in Ontario's economic growth and more supportive mortgage rates to breathe some life into local resale markets. While you have time to be selective, economic conditions may not remain this favorable indefinitely.

3. Include Protective Conditions

In this market, you can afford to include conditions for financing, inspection, and even sale of your current home. Use this leverage to protect yourself.

4. Negotiate Beyond Price

With longer market times, sellers may be willing to negotiate on more than just price—consider closing dates, included appliances, or repair credits.

What About Sellers?

If you're thinking of selling, this market requires a different approach:

Price Strategically: The pricing peaks of 2021 are gone, and many homeowners are realizing that achieving those valuations in 2025 simply isn't realistic

Invest in Presentation: When buyers are choosier, presentation matters more than ever. Professional staging and photography are more important than ever.

Be Realistic About Timing: Properties are taking longer to sell, so plan accordingly.

Looking Ahead: Is This Sustainable?

Several factors suggest the current buyer's market conditions may not last indefinitely:

• The impact of recent rate cuts began to appear in the resale market in late 2024 with elevated sales activity compared to the same time in 2023. We expect this to continue
• Population growth continues to drive underlying demand
• According to our estimates, Ontario's central markets are short of housing, providing some tailwind to new construction

The Bottom Line

For buyers who have been waiting on the sidelines, 2025 presents a unique opportunity. The combination of increased inventory, improved negotiating position, and more reasonable mortgage rates creates conditions we haven't seen in years.

However, this doesn't mean you should rush into any purchase. Take advantage of the time and choice this market provides to find a home that truly meets your needs and budget.

Ready to explore your options? Whether you're a first-time buyer taking advantage of these conditions or looking to upgrade in Milton, Vaughan, Mississauga, or Toronto, I'm here to help you navigate this shifting market and find the right opportunity for your situation.

The real estate market is constantly evolving. For the most current information about conditions in your specific area of interest, let's schedule a consultation to discuss your unique situation and goals.