Toronto Market Update March 2025: Home Prices, Tariffs & Economic Uncertainty

The Toronto real estate market continues to shift, and the latest numbers reveal a complex mix of challenges and opportunities. Whether you’re wondering if home prices are dropping, how tariffs and economic uncertainty are shaping the market, or if it’s better to buy or rent in 2025, this analysis breaks it all down.

In this March 2025 Toronto Market Update, I’ll cover:
✔️ Latest home price trends in Toronto
✔️ Why some areas are still seeing bidding wars
✔️ The impact of tariffs and economic instability on real estate
✔️ Should you buy, sell, or rent right now?
✔️ Under-the-radar neighbourhoods still offering value

📉 Toronto Real Estate Market Trends – March 2025

The February 2025 housing data is in, and it paints a mixed picture for buyers and sellers. Here’s what the numbers tell us:

Home sales dropped by 27% year-over-year, signaling weaker buyer demand.
Active listings surged by 76%, meaning there’s more inventory sitting on the market.
Average home prices declined by 2%—but not in every category.
Detached and townhouse prices are rising, while condos and semis are declining.

What does this mean for buyers and sellers?
📍 Buyers: More listings mean less competition in many segments, but demand for freehold homes remains high.
📍 Sellers: With increasing inventory, pricing strategy is critical. Overpricing could lead to longer days on market.

🏡 Toronto’s Under-the-Radar Real Estate Trends

While the GTA market overall is cooling, the City of Toronto continues to show resilience. Certain under-the-radar neighbourhoods are still seeing multiple offers, especially for freehold properties in the $1M-$1.5M range.

These areas continue to offer affordable homeownership opportunities compared to Toronto’s expensive core:

🔎 Best Hidden Gem Neighbourhoods in Toronto (March 2025 Update)

1️⃣ Oakwood Village – An entry-level luxury neighbourhood bordering Forest Hill, offering homes under $1.3M.
2️⃣ Briar Hill – A diverse area with detached homes, condos, and lofts, with an average home price of $900K.
3️⃣ Weston – One of the last truly affordable freehold areas in Toronto, with homes under $800K.
4️⃣ Fairbank – A transit-accessible area on the new Crosstown LRT with detached homes under $1.1M.
5️⃣ Keelesdale – A fast-growing neighbourhood with freehold homes under $900K and direct UP Express access.

💰 The Impact of Tariffs & Economic Uncertainty on Toronto Real Estate

The economy is shifting fast, and major factors like tariffs and rising costs are influencing real estate prices and buyer confidence.

🔹 Tariffs & Inflation: New tariffs on key materials could increase construction costs, making new homes more expensive.
🔹 Interest Rate Cuts: The Bank of Canada just lowered rates—but is it enough to bring buyers back?
🔹 Trump & the Global Economy: With another U.S. election on the horizon, economic instability could impact Canadian investment trends.

Should you buy, sell, or wait?
🏠 If you’re secure in your job and looking for a home, there are great opportunities right now in under-the-radar areas.
💰 If you’re a seller, ensure your home is priced right and marketed well to stand out in this high-inventory market.

📞 Need Expert Advice? Book a Free Call!

With so much uncertainty, it’s critical to make informed decisions in real estate. If you’re wondering whether now is the time to buy, sell, or rent, let’s chat.

👉 Book a free 45-minute call here: https://calendly.com/josh-1173/45min

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