As we step into 2025, the Greater Toronto Area (GTA) real estate market is showing signs of stabilization. While sales activity has slightly slowed compared to last year, an increase in new listings is providing more opportunities for buyers. Lower borrowing costs are encouraging more home purchases, but affordability concerns and economic factors like a slowdown in immigration are shaping a more balanced market.

Key Market Numbers

• Home Sales: 3,847 homes sold in January 2025, down 7.9% from last year.

• New Listings: 12,392 new properties hit the market, a 48.6% increase year-over-year.

• Average Selling Price: Homes sold for an average of $1,040,994, a modest 1.5% increase compared to 2024.

• Projected 2025 Sales: 76,000 homes are expected to sell this year, a 12.4% rise from 2024.

• Projected 2025 Average Price: Home prices are expected to reach $1,147,000, growing 2.6% over last year.

Here's a quick overview chart providing a snapshot of the current real estate market conditions:

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Let’s talk about something that’s becoming a big deal in real estate—smart homes. Smart home technology is here, and it’s changing the way we live.

After 18 years in real estate, I’ve seen trends come and go, but this? This one’s sticking around. Back in the day, people wanted homes with big backyards, modern kitchens, or great school zones (still important, by the way). Now, more and more buyers are asking, “Does this home have smart features?”

What Is a Smart Home, Really?

If you’re wondering what makes a home “smart,” here’s the short version: it’s a home equipped with technology that makes your life easier. Think voice-controlled lights, thermostats that know when you’re not home, or security cameras you can check from your phone.

Some of the most popular smart home features include:

Smart Thermostats

These help you save energy and keep your home at the perfect temperature—no more fiddling with dials.

Smart Security Systems

Doorbell cameras, smart locks, and motion detectors give you peace of mind, especially if you’re away.

Smart Lighting

Turn lights on or off from your phone or schedule them to match your routine.

Voice Assistants

Alexa, Google Home, or Siri can do everything from playing music to setting reminders—or even turning off the lights you forgot about.

Car Charging Ports

With the rise of electric vehicles, smart car charging stations are becoming a key feature. Charge your EV efficiently at home, with options to monitor usage and optimize charging during off-peak hours.

Smart Appliances

Refrigerators that track your groceries, ovens you can preheat from your phone, and washing machines that adjust settings based on load size. These appliances add convenience, efficiency, and even energy savings to your home.

Smart Blinds & Shades

Automated window treatments that adjust based on time of day or temperature can help with energy efficiency and convenience.

Why Smart Homes Are Booming in the GTA Luxury Market

Here in the Greater Toronto Area, smart homes are becoming a major selling point, especially in the luxury market. Here’s why:

1. Convenience: Life is busy. Whether you’re juggling work, kids, or just trying to carve out a little downtime, smart homes take care of the small stuff so you can focus on what matters.

2. Energy Efficiency: Let’s face it—energy bills aren’t getting any cheaper. Smart thermostats, blinds, and appliances can help you save money without even trying.

3. Security: In higher-end neighborhoods, security is a top concern. Smart systems let you keep an eye on things, even when you’re on vacation.

4. Resale Value: Homes with smart tech stand out. In my experience, buyers are willing to pay more for homes that are future-ready.

Thinking About Getting Smart?

If you’re new to the idea of smart homes, don’t worry. It’s not as overwhelming as it sounds. Here’s how to get started:

1. You don’t need to overhaul your entire home. Start with a smart plug or a single light bulb. You’ll be surprised how quickly you get hooked.

2. Are you looking for better security? Lower energy bills? More convenience? Start with what’s important for you now.

3. If you’re renovating or building, talk to your contractor about smart wiring—it’ll save you time and money later. Always plan ahead.

4. Whether you’re buying, selling, or upgrading, work with a real estate agent who understands the value of smart homes (hint: yep, that’s me).

Smart homes aren’t just a trend—they’re becoming the norm. And if you’re in the market for a luxury home, having smart features can make all the difference.

What do you think? Ready to future-proof your home? If you’re curious about what smart home features would work best for you—or if you’re looking to buy or sell—I’d be happy to help. Contact us to schedule a free online consultation.

The Bank of Canada just announced a 25-basis-point rate cut, bringing its key policy rate down to 3%. This move marks a significant shift in monetary policy, signaling the end of quantitative tightening and a more accommodative stance to support economic growth. But what does this mean for real estate, mortgages, and the broader economy? Let’s break it down.

Why Did the Bank of Canada Cut Rates?

The decision to lower the policy rate comes amid a mix of economic factors. Inflation is hovering around the 2% target, job growth is stabilizing, and consumer spending is picking up. However, business investment remains sluggish, and global trade uncertainties—especially with potential US tariffs—pose risks to Canada’s economic outlook.

With the economy still operating below its full potential, the Bank has opted for a rate cut to help stimulate borrowing, investment, and overall economic activity. The move also aligns with global trends, as other central banks adjust their policies in response to shifting economic conditions.

How Does This Affect Mortgages?

For homebuyers and existing homeowners, this interest rate cut is welcome news. Banks have also cut their prime rate by 25bps to 5.20% following the Bank of Canada’s lead. Here’s how it impacts you:

• Variable-Rate Mortgages: If you have a variable-rate mortgage, you’ll see an immediate drop in your interest rate, leading to lower monthly payments.

• Fixed-Rate Mortgages: While fixed mortgage rates are influenced more by bond yields than the Bank of Canada’s policy rate, this rate cut could still contribute to downward pressure on fixed rates.

• Mortgage Renewals: If you’re renewing your mortgage soon, this could be an opportunity to secure a more favorable rate and lower your overall borrowing costs.

As borrowing becomes more affordable, we may see increased activity in the housing market as more buyers take advantage of lower rates to enter the market.

Impact on Real Estate Market

Lower interest rates typically encourage more homebuyers to enter the market, increasing demand. Here’s what to watch for:

Increased Affordability

• Lower borrowing costs mean reduced mortgage payments, particularly for those with variable-rate mortgages, who will see immediate relief.

• Buyers who were previously on the sidelines may find it easier to qualify for a mortgage or afford a higher price point, potentially increasing demand.

• Investment Opportunities: For real estate investors, lower rates can improve cash flow and make financing new properties more attractive.

What Should Buyers and Investors Do?

1. Get Pre-Approved: If you’re considering buying a home, now is a great time to get pre-approved for a mortgage while rates are still low.

2. Review Your Mortgage Strategy: If you have a variable-rate mortgage, keep an eye on future rate announcements. Fixed-rate holders should evaluate whether switching to a lower rate makes financial sense.

3. Consider Refinancing: If you have a high-interest mortgage, this could be a good time to refinance and lock in a lower rate, reducing your monthly payments.

4. Think Long-Term: While rates are lower now, they won’t stay down forever. Plan your real estate investments with a long-term perspective.

Looking Ahead: What’s Next for Interest Rates?

The Bank of Canada will closely monitor economic conditions and inflation trends before making further moves. While another rate cut is possible, much will depend on global trade developments, job growth, and overall economic performance.

The next scheduled interest rate announcement is on March 12, 2025, so stay tuned for updates that could impact your mortgage and real estate plans.

This interest rate cut is a big deal for the Canadian real estate market. Whether you’re a first-time homebuyer, an investor, or a homeowner looking to refinance, now is the time to evaluate your options. If you need expert advice on how to navigate these market changes, feel free to reach out—we’re here to help you make the most informed decisions.

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The Greater Toronto Area (GTA) real estate market experienced a dynamic year in 2024, marked by modest sales growth, increased inventory, and varied price trends across housing types. Let’s delve into the key takeaways and what they could mean for the year ahead.

A Look Back at 2024

In 2024, 67,610 homes were sold, a 2.6% increase compared to 65,877 homes sold in 2023. Meanwhile, 166,121 new listings entered the market, reflecting a notable 16.4% rise in supply. This influx gave buyers more options and greater negotiating power, particularly in the condo segment, which experienced the sharpest price declines.

The average home price in 2024 settled at $1,117,600, a slight dip from $1,126,263 in 2023. Detached and semi-detached homes retained their value better, while condos faced more significant pricing challenges.

The Role of Interest Rates

Persistently high interest rates throughout much of 2024 dampened affordability for many buyers. However, the Bank of Canada introduced two rate cuts in the second half of the year, providing some relief. TRREB President Elechia Barry-Sproule noted that these rate reductions, combined with slightly lower home prices, could help invigorate the market in 2025.

➡️ Read more: Bank of Canada Interest Rate Cuts and What They Mean for You

Key Market Trends from 2024

TRREB’s Chief Market Analyst, Jason Mercer, highlighted several trends:

• Strong demand for single-family homes: Sales remained robust, reflecting their continued appeal.

• Challenges for the condo market: Many first-time buyers postponed purchases, anticipating further interest rate reductions in 2025.

These trends underscore how market dynamics are influenced by both financial conditions and buyer sentiment.

Ending the Year: December 2024 in Numbers

The GTA market closed 2024 with 3,359 homes sold in December, a slight decline from December 2023. Active listings remained plentiful, offering buyers a wide range of choices. The average home price in December was $1,067,186, marginally lower year-over-year. The MLS® Home Price Index saw a modest increase of less than 1%.

Looking Ahead: Predictions for 2025

Here’s what could shape the GTA real estate market in 2025:

1. Further rate cuts from the Bank of Canada may boost affordability, drawing more first-time buyers into the market.

2. High inventory levels could keep buyer options open and prices relatively stable.

3. Potential policy changes on housing and development might influence supply and demand.

4. Diverging price trends: Detached and semi-detached homes are likely to hold value, while the condo market may continue to face challenges.

5. Market stabilization: With conditions normalizing after a period of adjustment, the market is expected to stabilize in 2025, bringing improved balance and better opportunities for both buyers and sellers.

TRREB’s comprehensive Market Outlook and Year in Review report, due in February, will shed more light on these evolving trends.

Stay Ahead of the Curve in 2025

Thinking about buying, selling, or investing in the GTA? Staying informed is your best strategy. Subscribe to our newsletter for expert insights, market updates, and actionable advice. Be prepared to make confident, well-informed real estate decisions in 2025!

In December 2024, there were 3,359 homes sold, which is a small drop compared to December 2023. However, the number of new listings stayed strong. The average price of a home that month was $1,067,186, just a bit lower than last year.

Overall, the Greater Toronto Area (GTA) real estate market in 2024 saw more activity. Home sales increased by 2.6% with a total of 67,610 homes sold, while the number of new listings went up by 16.4%, reaching 166,121. Giving the buyers more options.

The average price for a home in the GTA was $1,117,600, which is slightly lower than in 2023. Prices for detached and semi-detached homes stayed stable, but condos became more affordable. High interest rates made it harder for people to buy, but two rate cuts from the Bank of Canada later in the year made borrowing a bit easier.

Here’s what stood out:

• Detached and semi-detached homes held their value, while condo prices dropped.

• Many first-time buyers decided to wait for better rates in 2025.

The 2024 market shows us that things are changing, and 2025 could be a great time to make a move in real estate. Stay updated with the latest GTA real estate market. Let’s make 2025 a great year for your real estate journey! Subscribe to our newsletter today.

On December 11, 2024, the Bank of Canada announced a 0.50% cut to its key interest rate, bringing it down to 3.25%. This marks the fifth rate cut since June. While the reduction is significant, the Bank has signaled that the pace of future cuts will likely slow.

Why It Matters

Interest rate changes influence many aspects of the economy and personal finances. Here’s what this latest adjustment could mean for you:

• Lower Borrowing Costs: Big banks like TD, RBC, and others have already reduced their prime rates to 5.45%, which can make borrowing more affordable for mortgages, car loans, and personal loans.

• Real Estate Impacts: Lower rates may make it easier for buyers to qualify for mortgages, potentially boosting activity in the housing market.

• Savings Accounts: On the flip side, interest earned on savings may decrease, affecting returns for savers.

Implications for Buyers and Sellers

• For Buyers: Lower rates mean reduced monthly mortgage payments, making homeownership more attainable. This could be a good time to explore the market if you’re considering purchasing a home.

• For Sellers: Increased buyer activity might create more competition for properties, potentially supporting home prices. However, competitive pricing remains essential as market dynamics vary by location and economic factors.

A Look at Recent Rate Trends

The graph below illustrates the Bank of Canada's interest rate changes over the last three years. After peaking earlier in 2024, rates have steadily declined, with the latest cut reflecting efforts to support the slowing economy while keeping inflation near the 2% target.

What’s Next?

The Bank of Canada has emphasized a cautious approach moving forward, signaling that future decisions will be made “one meeting at a time.” Some Economists predict rates may stabilize between 2.5% and 3%, a range considered neutral for balancing economic growth and inflation control.

However, challenges remain. Potential U.S. tariffs could affect Canadian exports, adding uncertainty to the economic outlook.

Takeaways

The recent rate cuts aim to balance a cooling economy and steady inflation, offering opportunities like cheaper borrowing costs and potentially more active housing markets. Still, broader economic conditions warrant careful consideration for major financial decisions.

Stay informed as the Bank of Canada continues to adjust its policies. Understanding these changes can help you navigate their impacts on your finances and the real estate market.

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Subscribe to our newsletter for insights and tips to make informed decisions in today’s dynamic market.

As we close in on the end of 2024, it’s clear that the Greater Toronto Area’s housing market is picking up. November brought significant changes.

Market Highlights

Sales Activity: November saw 5,875 homes sold, marking a 40.1% increase compared to November 2023. More affordable market conditions and lower borrowing encouraged many buyers to enter the market, boosting sales activity.

Average Price: The average selling price increased to $1,106,050, reflecting a 2.6% increase year-over-year. Detached homes led the price growth, especially in Toronto, while condos remained an affordable option for buyers seeking negotiation power.

Inventory: New listings rose 6.6% year-over-year, with 11,592 properties hitting the market. However, sales outpaced listings, resulting in tighter market conditions

Months of Active Inventory: The supply of active listings translates to 3.71 of inventory and more of a balanced market overall. Note, this is not reflective of the entire market. For example, in the City of Toronto detached homes the number is much lower at 2.89 Months, and in contrast Central Toronto Condos there is 5 months of inventory.

Localized GTA Market Trends

When we zoom in on specific cities, the market dynamics become even more interesting:

• Markham: Detached and semi-detached homes experienced price declines of 6.83% and 3.2% year over year respectively, but are up month over month, while townhouses rose by 1.52% year over year, and 5.94% month over month. Condo prices remained stable.

• Richmond Hill: Detached homes prices surged by 13.32%, with smaller gains in semi-detached and townhouses. Condos saw an 8.50% drop, presenting opportunities for buyers.

• Vaughan: Detached homes fell by 6.30%, but semi-detached properties and townhouses saw gains of 5.21% and 5.24%, respectively. Condo apartments dipped by 4.14%.

Key Trends Driving the GTA Market

Lower Borrowing Costs: Reduced inflation and stabilizing interest rates are giving buyers more purchasing power.

Detached Homes in Demand: Detached properties outperformed other segments, with prices growing above inflation.

Condo Market Opportunity: While detached homes soar, condos remain a bargain for buyers, offering plenty of inventory and negotiation leverage.

Rental Market Strength: As more renters transition into homeownership, rental supply remains steady. High immigration continues to support rental demand, balancing the market.

What to Look Forward To in 2025

The stage is set for a continued market recovery in the new year:

Market Recovery Acceleration: Lower borrowing costs and reduced monthly mortgage payments will likely drive more activity.

Steady Price Growth: Expect home prices to continue their upward trend, especially in high-demand areas.

Mortgage Rule Changes: Some of the bold changes to mortgage rules will be in effect going into 2025 which will make mortgages more affordable and increase purchasing power

What Does This Mean for You?

For Buyers

If you’ve been waiting for the right time to buy, consider making your move now. Plenty of opportunity with good amount of inventory and favorable interest rates now and into the new year. Condos in particular offer plenty of choice and negotiating opportunities.

For Sellers

With demand outpacing supply, it’s could be an ideal time to list your property. The right pricing and marketing strategy could help you maximize returns in this competitive market.

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The GTA real estate market this November reported a home sales soared by an impressive 40.1% compared to last year, with 5,875 homes sold. New listings were also up by 6.6%, but since sales grew much faster, the market is tightening up.

The average home price in the GTA climbed to $1,106,050, up 2.6% year-over-year, driven by a higher number of detached home sales. Detached homes, especially in Toronto, saw prices rising faster than inflation. Condos, however, remain a budget-friendly option, giving buyers more room to negotiate.

This activity is fueled by lower borrowing costs and improved economic conditions, creating the perfect setup for an exciting 2025 in real estate!

Check out November’s GTA Market Watch charts for a quick overview:

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We’re honored and grateful to share some wonderful news—Royal LePage Terrequity Realty has been named the 2024 Readers’ Choice Diamond Award Winner by the Toronto Star! What makes this especially meaningful is that it’s our third consecutive year being recognized as the Top Real Estate Brokerage in the GTA.

This recognition is not just about us—but our clients, partners, and community, who have placed your trust in us to guide you through some of life’s most significant moments. Whether it’s buying, selling, or investing, being part of your journey is what inspires us every day.

Why This Recognition Matters

The Diamond Award is chosen by readers like you, and it reminds us how important it is to serve with care, professionalism, and dedication. At Royal LePage Terrequity Realty, our team strives to be Proactive Trusted Advisors—putting your goals at the heart of everything we do.

We’re also humbled to share that for the past 8 years, we’ve been recognized with the Consumer’s Choice Award, making this year’s dual recognition extra special. These achievements are a reflection of the collective effort of our agents, staff, and, most importantly, the trust you continue to place in us.

What This Means for You

This award reaffirms our commitment to providing the best possible service to you. Whether it’s your first home, your dream property, or an investment opportunity, our focus is on ensuring your experience is seamless, informed, and rewarding.

It’s not about the awards—it’s about the results and the satisfaction of seeing you achieve your real estate goals.

A Heartfelt Thank You

To everyone who voted, supported, and believed in us—thank you. This achievement is as much yours as it is ours. Your referrals, kind words, and confidence in our team mean the world to us and motivate us to keep striving for excellence.

Let’s Continue the Journey Together

If you’re considering buying, selling, or investing in real estate, we’d be honored to support you. Reach out today and let’s work together to make your real estate dreams a reality.

Here’s to another year of serving you with gratitude, dedication, and a passion for making your goals come true. Thank you for being such an important part of our journey.

If you're dreaming of buying your first home, you’ve probably wondered, "How am I going to save up for it?" Well, let me introduce you to the First Home Savings Account (FHSA). It’s a fantastic tool that combines the perks of two other popular accounts—the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP)—to help you save for your first home. Let’s break it down in simple terms.

What Is the FHSA?

The FHSA is like a savings superhero, designed specifically for first-time homebuyers in Canada. It gives you powerful benefits:

1. Tax-Deductible Contributions:

   You can contribute up to $8,000 a year, with a lifetime cap of $40,000. The best part? Your contributions are tax-deductible! That means if you put money into your FHSA, you lower your taxable income for the year—and that could mean paying less in taxes.

2. Tax-Free Growth:

   Just like with a TFSA, the money you invest in your FHSA grows tax-free. Whether it’s earning interest, dividends, or capital gains, you don’t have to share a dime with the CRA (Canada Revenue Agency).

3. Tax-Free Withdrawals:

   When you’re ready to buy your first home, you can withdraw from your FHSA completely tax-free. Every dollar you saved goes directly toward your home purchase—no deductions, no catches.

4. Roll Over Unused Savings:

   What if you decide not to buy a home or your plans change? No worries. You can roll over unused funds into your RRSP or RRIF (Registered Retirement Income Fund) and keep enjoying tax-free growth for retirement savings.

Who Can Open an FHSA?

It’s not for everyone. To qualify, you need to be:

• A first-time homebuyer (you haven’t owned a home in the last four years).

• A Canadian resident aged 18 or older.

If you check those boxes, you’re good to go!

Pro Tips for Using the FHSA

1. Start Early: Even if you’re a few years away from buying, opening an FHSA now lets your money grow tax-free longer.

2. Max Out Your Contributions: Aim to hit that $8,000 yearly limit to get the most out of your tax deduction and savings potential.

3. Combine with Other Programs: Pair the FHSA with programs like the RRSP Home Buyers’ Plan for even more buying power.

Ready to Open an FHSA?

Opening an FHSA is straightforward. Many banks, credit unions, and financial institutions across Canada offer them. Check with your financial advisor or bank to find the best fit for you.

The FHSA is an incredible opportunity for first-time homebuyers to save smarter and faster. Whether you're just starting your journey or already looking at listings, every bit of savings counts.

Take the first step toward your dream home today! If you have questions or want to discuss how this fits into your home-buying plan, let’s chat. Book a call today—I’m here to help!