As we head into the summer of 2025, Toronto’s real estate market is showing encouraging signs of stabilization. After months of uncertainty fuelled by shifting interest rates, global trade tensions, and economic unease, today’s market presents opportunities for buyers that haven’t been seen in years.
If you’ve been thinking about purchasing a condo in Toronto, this summer might be the perfect time to make your move. Here’s what you need to know.
More Choice for Condo Buyers
Condo shoppers are enjoying greater selection than ever. According to the Toronto Regional Real Estate Board (TRREB), the number of new condo listings in the GTA rose 25.2% in Q1 2025 compared to the same period last year. This surge in available inventory is giving buyers the upper hand with more options to choose from and the ability to negotiate pricing or incentives.
Prices Have Adjusted, Making Condos More Affordable
After years of rapid price growth, the market has cooled slightly, making condos more affordable. TRREB reports the average selling price of a GTA condo in Q1 2025 was $680,146, a 2.2% decrease compared to the previous year. In the City of Toronto specifically, the average price for condos dipped by 6.5% year-over-year to about $683,000 as of May 2025.
For buyers, this means greater affordability, not only in purchase price but also in borrowing costs. With the Bank of Canada cutting rates several times in recent months, mortgage rates for condo purchases have become more attractive. As of mid-June 2025, some lenders are offering three-year fixed rates as low as 3.89%, making it easier to save on financing.
As TRREB Chief Information Officer Jason Mercer noted, “Home ownership costs are more affordable this year compared to last. Average selling prices are lower, and so too are borrowing costs.” This combination of lower prices and better mortgage terms makes home ownership more attainable for a wider range of buyers, including first-time buyers and investors.
First-Time Buyers Have an Advantage
Market conditions are especially favourable for first-time buyers. The federal government has introduced measures to support new homeowners, including more flexible insured mortgage rules and longer amortization periods. These policies, combined with lower condo prices, are expected to bring more first-time buyers into the market this year.
TRREB CEO John DiMichele also emphasized that restoring affordability is now a national priority, with housing initiatives aimed at boosting supply and reducing taxes. As these efforts unfold, new construction could pick up in the coming years, but today’s buyers stand to benefit from the current buyer-friendly market conditions.
The Rental Market Is Easing
Over the past year, the GTA’s rental market has seen a surge in supply. This has provided renters with more negotiating power and stabilized rental rates after years of sharp increases. However, as borrowing costs decline and economic confidence improves, experts predict that some renters may transition into homeownership, especially if they see attractive deals in the condo market.
This shift could spark renewed demand for condo developments later in 2025 and into 2026. Buyers who purchase now may benefit not only from today’s lower prices but also from future market appreciation as demand returns.
Market Balance Expected to Improve
While the condo market remains in “buyer’s market” territory, recent trends suggest conditions are beginning to balance. Seasonally adjusted data shows that May home sales in the GTA were up for the second month in a row. At the same time, new listings, while elevated, are growing at a slower pace than sales, hinting at a gradual tightening of supply.
Analysts from RBC and CREA (Canadian Real Estate Association) have also noted early signs of recovery across Canadian housing markets as trade tensions ease and economic uncertainty declines. This positive momentum could lift buyer confidence as the summer progresses.
Bottom left image: TRREB
Why Summer 2025 Is a Great Time to Buy
For condo buyers, this summer offers a rare alignment of positive factors:
- Increased supply and choice mean more options and negotiating power.
- Lower average prices improve affordability.
- Reduced mortgage rates cut monthly costs.
- Government support for first-time buyers expands purchasing opportunities.
- Potential future price appreciation is in sight as market confidence rebuilds.
While some investors may still be cautious given past volatility, those ready to buy stand to benefit from a market that favours buyers in both pricing and selection.
Advice for Buyers in 2025
Toronto’s real estate market in summer 2025 is creating opportunities that buyers haven’t seen in years. With affordability improving, mortgage rates easing, and inventory levels high, today’s homebuyers can approach the market with confidence. Whether you’re looking for a home or an investment, this season may be the right time to make your move.
As always, working with knowledgeable real estate professionals and developers can help you make the most of today’s buyer-friendly conditions. Stay informed, stay confident, and you could find the perfect Toronto condo this summer.
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