Written by Yousaf Iqbal, Head of IQI Canada
The Canadian real estate market began 2025 with strong sales activity and increased listing inventory, reflecting shifting market dynamics across key metropolitan areas. A combination of interest rate cuts in late 2024, improved affordability measures, and growing buyer confidence has contributed to heightened activity, particularly in Toronto, Vancouver, and Montreal.
Greater Toronto Area (GTA)
- Home sales surged by 48.6% year-over-year, demonstrating renewed buyer demand.
- The average selling price rose by 1.5% to $1,040,994, indicating moderate price growth in line with inflation.
- Market analysts expect a well-supplied housing market to keep annual price appreciation steady throughout the year
The Toronto Regional Real Estate Board (TRREB) projects that the GTA’s housing market will see moderate price growth, keeping pace with inflation. The MLS® Home Price Index Composite benchmark rose by 0.44% year-over-year in January 2025
Vancouver
- New listings increased by 46% year-over-year, indicating growing seller confidence.
- The total inventory of homes for sale grew by 33.1%, providing more options for buyers.
- Residential sales rose by 8.8%, contributing to a balanced market environment.
Montreal
V
- Real estate transactions jumped by 36%, surpassing historical averages.
- This surge was primarily driven by favorable financing conditions following the recent interest rate cuts.
Toronto Market Update
The year started with GTA REALTORS® reporting 3,847 home sales through TRREB’s MLS® System in January 2025, marking a 48.6% year-over-year increase. On a seasonally adjusted basis, January sales increased month-over-month compared to December 2024. The MLS® Home Price Index Composite benchmark rose by 0.44% year-over-year, while the average selling price of $1,040,994 was up 1.5% compared to January 2024. The TRREB Market Outlook and Year-in-Review report suggests that a well supplied housing market will keep annual home price growth aligned with inflation, leading to moderate price increases in the GTA throughout 2025
Vancouver Real Estate Market – January 2025
New MLS® listings in Metro Vancouver surged by 46% year-over-year in January, as sellers entered the market with renewed confidence. According to Greater Vancouver REALTORS® (GVR), residential sales in the region totaled 1,552 in January 2025, marking an 8.8% increase from 1,427 sales in January 2024. However, this figure remained 11.3% below the 10-year seasonal average of 1,749.
A total of 5,566 detached, attached, and apartment properties were newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2025. This represents a 46.9% increase compared to the 3,788 properties listed in January 2024, and 31.1% above the 10-year seasonal average of 4,247.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver stands at 11,494, a 33.1% increase from January 2024 (8,633), and 33.2% above the 10-year seasonal average of 8,632.
Sales-to-Active Listings Ratio – January 2025
Across all property types (detached, attached, and apartments), the sales-to-active listings ratio stands at 14.1%:
- Detached homes: 9.2%
- Attached properties: 18.5%
- Apartments: 16.5%
Quebec
