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Real Estate Market Toronto 

Posted on Aug 28, 2025

Real Estate Market Toronto


Real Estate Market Toronto 2025: Buyer’s Market Insights & Muskoka Comparisons

Cottage Life Tips Series - By Jeffrey Braun - Corcoran Horizon Realty

The Toronto real estate market in 2025 is undergoing one of its most significant shifts in over a decade. With rising inventory, falling prices, and mortgage rate adjustments, conditions have swung firmly in favour of buyers. At the same time, Muskoka’s luxury and cottage markets are also experiencing adjustments, offering new opportunities for those seeking waterfront retreats. Whether you’re an investor, a first-time buyer, or looking to sell, understanding these trends is essential to navigating the months ahead.

Toronto Real Estate Market: What’s Happening in 2025

The Toronto housing market has seen notable year-over-year changes:

  • 📉 Average home price: down 5.4% year-over-year.
    • Condos: -8.1%
    • Single-family homes: -5.7%
    • Townhouses: -7.9%
    • Current average price: $981,000 (as of July 2025).
  • 🏠 Inventory is at decade highs, giving buyers unprecedented choice and negotiation power.
  • ⚖️ Sales-to-new-listings ratio: 35% in the GTA, 37% in Toronto proper – well below a balanced market, underscoring that sellers must be competitive 
  • 💰 Despite seven consecutive Bank of Canada rate cuts (2024–2025), demand has not surged, as supply still outweighs buyer activity.
  • 🔮 Outlook: Prices are expected to stabilize later in 2025, especially if mortgage rates decline further. However, affordability remains one of Toronto’s most significant challenges.

Muskoka Real Estate Market: A Cottage Country Perspective

While Toronto wrestles with urban affordability, Muskoka real estate has entered a buyer’s market as well:

  • 🕒 Days on market: up to 47 (nearly double since 2022).
  • 📊 Price trends: Non-waterfront homes dropped 2% (2023–2024) but are expected to rise modestly by 3% in 2025.
  • 🌊 Waterfront properties: Strongest activity in the under-$800,000 range (sales up 64.6% YoY), while luxury estates remain more exclusive 
  • 🎯 Buyer profile: First-time buyers dominate in the $500,000–$600,000 range, with retirees and move-up buyers targeting higher brackets.
  • 🛶 Luxury cottages: Inventory has increased, and buyers now have negotiating leverage on properties under $3 million 

Toronto vs Muskoka: Key Market Differences

Market 2025 - Price Trend - Buyer/Seller Power - Inventory Levels - Notable Segment

Toronto: Avg price down -5.4% YoY - Buyer’s market - Decade-high inventory - Condos weakest, prices falling
Muskoka: +3% expected in 2025 - Buyer’s market - Rising steadily - Waterfront <$800k thriving

Both regions show buyer-friendly conditions, but while Toronto struggles with affordability, Muskoka thrives on lifestyle appeal. Buyers in Muskoka are motivated by year-round cottages, lake access, and natural beauty, while Toronto buyers focus on affordability, mortgage rates, and investment potential.

Practical Takeaways for Buyers and Sellers

  • For Buyers: This is a rare moment where both urban and cottage markets favour you. Toronto offers more listings at softer prices, while Muskoka offers negotiating room on premium waterfront properties.
  • For Sellers: Pricing realistically is key. With higher inventory and motivated buyers, overpricing will prolong days on market and hurt visibility.
  • For Investors: Watch for stabilized interest rates in late 2025, which could ignite renewed demand. Early movers may secure prime properties before the rebound.

Final Thoughts

The Toronto real estate market in 2025 represents a turning point: increased inventory, softer pricing, and a buyer’s advantage not seen in years. Meanwhile, Muskoka continues to attract those seeking the balance of luxury, lifestyle, and long-term investment in Ontario’s most desirable cottage country. Whether you’re buying a city condo, selling a Muskoka retreat, or searching for your first waterfront property, now is the time to act with strategy and insight.

✨ For more insights, reach out to Realtor Jeffrey Braun at JeffreyBraun.ca and Corcoran Horizon Realty, corcoranhorizon.com, to start your journey today. 

#marketupdate #muskoka #muskokarealestate #toronto #torontorealestate #jeffreybraun #corcoranhorizonrealty

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