Is now a good time to buy a Toronto detached house? Feb 2025

Prices have dropped since April 2024. Falling prices in the second half of the year have been typical of the past three years but were unheard of between 2019 and 2022.

Typically, early spring is a “tighter” market with fewer detached houses for sale in Toronto and more homebuyers looking. That puts upward pressure on prices and works against buyers.

Then, by late spring and summer, there will be fewer active buyers, and active listings will tend to accumulate, easing the upward pressure on prices and favours buyers.

While the detached house market is a seller's market, and sellers have the upper hand in negotiations, inventory levels have improved in favour of buyers. Compared to last year, months of inventory increased from 2.1 to 4.3—up 105 percent!

The Toronto detached house market is nearly balanced. It is a better time to buy than a year ago, and buyers can expect fewer bidding wars.

The number of Toronto detached houses purchased in January was similar to last year, but the number of houses for sale has risen. That’s why the months of inventory have increased.