Donald Trump's on-again-off-again tariff threats have dominated the news since he took office less than 3 weeks ago. The good news is that the threats from our neighbour to the south seem to have united our nation in solidarity against the tariffs and his threats about us becoming the 51st state and have increased our resolve to focus on buying Canadian-made goods. The downside is that all the unknowns have played havoc with our dollar and caused many Canadians to press pause on high-ticket spending.
On January 29th the Bank of Canada implemented a further .25% reduction on their policy rate (with further rate reductions predicted to follow in March and April), which will hopefully encourage buyers to enter the market as fixed rates fall and spring inventory increases.
The market update below is the January data from the Toronto Real Estate Board, which saw a small decrease in sales and an increase in listings, shifting us into a buyers market.
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While sales were down 6 percent compared to last year, new listings surged by 37 percent, signalling a shift in seller activity.
The balance between supply and demand continues to evolve, with more inventory providing opportunities and choice for buyers while sellers face greater competition.
Looking ahead, interest rate expectations and affordability concerns will shape the market in the coming months. If rates trend lower, we may see increased activity as buyers regain confidence. Sellers should stay informed about pricing trends and competition in their segment.
Navigating this shifting market requires expert insight. Whether you’re considering buying, selling, or just want to discuss your options, let’s connect!
Looking to buy or sell a home in Toronto? Average prices in January were as follows:
➕Detached $1,579,386 [+1% vs. 2024]
➕Semi-detached $1,154,505 [-4% vs. 2024]
➕Townhouse $941,893 [+5% vs. 2024]
➕Condo $691,039 [-11% vs. 2024]
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Data presented is for City of Toronto Only. Source: TRREB.
