The Bibby Group | February 2025 Newsletter

The Toronto Real Estate market started the year briskly on the heels of late 2024’s lower supply levels,
which prompted many people to list their homes. Indeed, we witnessed a flurry of quick transactions in
January as supply from last year was suddenly absorbed. In recent weeks, however, supply has increased significantly as sellers try to get a head start on the spring market. Based on recent Toronto Real Estate
Board data, condominium supply is currently up year over year by 46%, while values are down over the
same period by approximately 3%. Surprisingly, the number of central Toronto condominium
transactions in January is down by approximately 19% year over year in what felt like a more upbeat
marketplace.

The freehold market has remained stable, as both property values and the number of transactions year
over year for homes remained largely resilient and relatively unchanged. Supply, however, has increased
dramatically, as the number of detached homes listed centrally in January was up by an astonishing 97%,
while the number of semi-detached homes listed was up by 61%.

As current political and economic challenges have increased anxiety in the marketplace and altered
consumer confidence recently, Canada’s central bank lowered its key interest rate by 25 basis points to
3%. This cut, however, has been overshadowed because it will do little to negate the economic impact
of potential U.S. tariffs. As I recently reported in The Globe and Mail last week, sellers’ expectations at
the moment are reasonable, with most informed of the lack of growth, high supply and external
challenges for the year ahead. These factors are painting the picture of a buyer-friendly 2025—which
hopefully entices waiting buyers to come off of the sidelines.

That being said, it feels as though uncertainty regarding our federal political landscape, President
Trump’s lingering tariff threat and their potential impact on our marketplace and the weakness of our
dollar have formed new discussions in our negotiation process. On top of this, tracking supply levels as
we march into the spring market will be critical. Proper pricing and patience will allow us to prevail in
the weeks ahead. As the last five years have brought forward challenges with a pandemic, interest rate
hikes and surging supply levels, it appears that our evolving marketplace faces yet another uphill climb.