Is now a good time to sell 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 benefits sellers.

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 working against sellers.

While the Toronto detached house market is a seller’s market and sellers have the upper hand in negotiations, inventory levels have increased, disadvantaging sellers.

Months of inventory increased from 2.1 to 4.3 compared to last year. Up 105 percent!

The Toronto detached house market is nearly balanced. Selling conditions are worse now than a year ago, and sellers can expect fewer bidding wars.

However, if you plan to sell in 2025, listing early in the year will likely improve your negotiating power more than waiting until the summer.

Lower mortgage rates and loosening mortgage qualification rules could help more house buyers enter the market, but they haven’t had a huge impact yet.

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