📊 GTA Real Estate Market Trends – April 2025 Update

by Gerald Lawrence

Author: Gerald Lawrence, REALTOR®
Published: May 9, 2025
Reading Time: 7-9 minutes

🔍 Introduction

The Greater Toronto Area (GTA) real estate market continued to evolve in April 2025, reflecting broader economic pressures, buyer psychology, and seasonal trends. Whether you’re a homeowner, investor, or first-time buyer, understanding current housing data is critical.

In this article, we break down the latest TRREB Market Watch statistics, offer insight into price fluctuations, sales activity, and what this all means for your next move in the real estate market.

📈 Key Highlights for April 2025

Metric	April 2025	April 2024	% Change YoY
Total Home Sales	5,601	7,302	-23.3%
Average Selling Price	$1,107,463	$1,155,219	-4.1%
New Listings	18,836	17,418	+8.1%
MLS® HPI Composite Benchmark	—	—	-5.4%
Average Days on Market (LDOM)	25	33	Improved

The real estate market inside scoop for the community you love. See homes that are for sale and have recently sold. Find out if home sales in your neighbourhood are trending up or down. See what homes around you are currently selling for.

🏡 Breakdown by Housing Type

Here’s a detailed look at real estate sales and prices by home type across the 416 (Toronto) and 905 (suburban) areas.

📊 Sales & Average Price by Property Type

Type	Sales (416)	Sales (905)	Total Sales	Avg Price (416)	Avg Price (905)
Detached	1,430..	2,556..	3,986..	$1,431,495..	$1,324,280..
Semi-Detached.	505	778	1,283	$1,088,848	$944,934
Townhouse	312	925	1,237	$912,629	$884,746
Condo Apt	983	728	1,711	$678,048	$618,196

💬 Year-over-Year Price Change by Property Type

Detached: -6.9%
Semi-Detached: -5.0%
Townhouse: -5.2%
Condo Apartment: -6.1%

📉 Across all segments, buyers gained greater leverage due to elevated real estate inventory levels and improved affordability through moderated mortgage rates.

📉 What’s Behind the Dip in Sales?

Despite following a typical seasonal uptick from March, April 2025 real estate sales fell 23.3% year-over-year. This hesitation is largely attributed to:

High borrowing costs: Despite some moderation, the RATE HOLD! Bank of Canada Interest Rate Announcement – April 16, 2025.
Economic uncertainty: Following the federal election, many are monitoring the Canada-U.S. trade relationship, which may impact consumer confidence.
Improved inventory: Buyers now have more choices, leading to longer decision-making timelines.

📊 Economic Indicators Snapshot

Indicator	Value	Trend
Inflation (CPI YoY)	2.8%(Apr 2025)	↑ from 2.3% Mar
Toronto Unemployment Rate	5.0%(Apr 2025)	↑ from 4.8% Mar
Bank of Canada Overnight Rate	2.750%	↔ steady
Prime Lending Rate	6.45%	↔ steady
5-Year Fixed Mortgage Rate	5.09% avg.	↓ slightly

🌍 Regional Trends: Urban vs. Suburban

The 905 regions (e.g., Durham, York, Peel) showed resilience in price stability while urban centers like Toronto (416) saw sharper price drops, especially in condo segments.

🏙 Toronto (416):

Condos down 6.1%
Detached prices remain highest at $1.43M

🏘 Suburbs (905):

Balanced activity
Greater affordability attracted more buyers despite market cooling

💡 What This Means for Buyers and Sellers

🧭 For Buyers:

More selection: Higher active real estate listings mean less competition
Negotiation power: Sellers are more flexible on price and conditions
properties with more backyard: More real estate inventory available just outside the core within 1-2 hour drive from Toronto

💼 For Sellers:

Be realistic with pricing
Market your home’s unique features, such as workshops or acreage
Professional evaluation is key: Pricing right the first time shortens DOM and maximizes ROI

📍 Spotlight: Properties With Backyard Space

There’s growing demand for properties with some backyard space and/or additional buildings, especially among buyers moving from subdivision homes in City Centers. If you’re thinking of selling and your property fits this profile, now may be the perfect time to connect with qualified buyers.

📈 Chart: TRREB Sales Activity YoY

Real Estate Sales are down, but opportunities are up for savvy buyers and well-prepared sellers.

🤝 Let’s Talk: Free Market Evaluation

If you’re wondering about your home’s value in today’s changing market, I offer a FREE, no-obligation market evaluation that can help you decide if now is the right time to sell.

Whether you’re staying local or heading outside of the city to York Region or Durham Region and the Kawarthas, I can guide your move with real insights and connections to active, qualified buyers.

Summary

In April 2025, the Greater Toronto Area (GTA) real estate market saw a continued seasonal rise in activity from March, but overall real estate sales remained significantly lower than the same period in 2024. TRREB reported a 23.3% year-over-year drop in home sales, with only 5,601 transactions completed.

At the same time, new real estate listings rose by 8.1%, providing buyers with greater inventory and more negotiating power. The average home price fell by 4.1% to $1,107,463, while the MLS® Home Price Index Composite dropped 5.4% year-over-year, reflecting buyers’ cautious stance amid high borrowing costs and economic uncertainty following the recent federal election.

Elevated inventory and moderating mortgage rates contributed to more affordable housing options across the GTA. Detached, semi-detached, and condo apartment segments all experienced price declines, with detached homes in the 416 region averaging over $1.43 million.

Meanwhile, broader economic indicators showed continued inflation and employment growth, although real GDP growth remained uneven across timeframes. As households monitor developments in Canada’s trade relations and monetary policy, the GTA market is positioned for possible shifts in buyer sentiment should confidence improve and borrowing conditions ease.

❓ Frequently Asked Questions (FAQ)

1. Why are home sales down in April 2025?

Sales are lower largely due to buyer hesitation around high interest rates and economic uncertainty following the recent federal election and the ongoing trade war.

2. Is this a good time to buy real estate in the GTA?

Yes, if you’re financially ready. There’s less competition and more choice, giving buyers leverage in negotiations.

3. How can I make my home more attractive to buyers?

Highlight key features such as land, workshops, finished basements, or upgrades. Price competitively and stage professionally.

4. What’s the best area within an hour or two of Toronto to find land with buildings?

Areas north and east of York Region and Durham Region —such as Uxbridge, Clarington, Georgina, Brock, and parts of Kawartha Lakes—are growing in popularity among buyers looking for space and utility.

5. What’s the benefit of a free market evaluation?

It gives you an accurate sense of your home’s current market value, helping you plan with confidence. No strings attached.

📝 Final Thoughts

The GTA housing market is shifting, but with the right guidance, you can take full advantage of today’s conditions—whether you’re buying your dream rural property or selling your urban home.

📩 Let’s connect to discuss your goals and how I can help you navigate the market confidently.

May 1, 2025

📌 Capital Gains in Canada: A Must-Read Guide for Real Estate Investors

by Gerald Lawrence

Thinking about selling your rental or secondary property? Before you do, it’s critical to understand how capital gains tax can affect your bottom line. This guide explains what you need to know, what’s changed, and how to plan ahead.

Capital Gains in Canada: What Real Estate Investors Need to Know

Thinking about selling your rental or secondary property? Before you do, it’s critical to understand how capital gains tax can affect your bottom line. This guide explains what you need to know, what’s changed, and how to plan ahead.

Capital gains taxation is an important consideration for property owners and investors across Canada, particularly those holding secondary residences and rental properties.

Understanding how capital gains work, the implications for your tax obligations, and how strategic planning can mitigate liabilities is essential for making informed financial decisions.

What Are Capital Gains?

Capital gains occur when an asset, such as real estate, is sold for more than its adjusted cost base (ACB), which includes the purchase price plus certain costs like legal fees, renovations, and selling expenses.

In Canada, 50% of a capital gain is taxable and added to the seller’s income for the year. This is known as the capital gains inclusion rate.

For instance, if a property is sold for $1 million and the ACB is $600,000, the gain is $400,000, of which $200,000 would be taxable.

The Impact on Real Estate, Including Rental Properties

Real estate, especially rental properties and secondary residences, is subject to capital gains tax unless the property qualifies as a principal residence.

The principal residence exemption allows homeowners to shelter the full capital gain from tax if certain criteria are met.

However, secondary residences and rental properties do not qualify for this exemption.

When selling a rental property, the taxable portion of the gain is added to your total income, potentially pushing you into a higher tax bracket.

Additionally, if Capital Cost Allowance (CCA) was claimed on the property to offset rental income, a portion of that may be recaptured and taxed as income, not a capital gain.

This creates a tradeoff between the benefit of reducing taxes annually versus facing higher taxes upon sale.

Balancing Timing and Tax Efficiency

One of the key challenges for property owners is timing the sale of a secondary property. Selling in a year when your other income is lower can reduce the overall tax impact.

Conversely, selling during a high-income year could significantly increase your marginal tax rate, resulting in a larger tax bill.

Tax planning strategies can help balance this tradeoff:

Deferring the sale to a year with lower income
Using capital losses to offset gains
Transferring ownership to a spouse in a lower tax bracket (with caution, due to attribution rules)

These strategies highlight the importance of personalized tax planning, particularly when dealing with sizable capital assets like real estate.

Looking Ahead: Potential Tax Changes

In the 2024 federal budget, the government announced its intention to increase the capital gains inclusion rate from 50% to 66.67% for gains over $250,000, effective January 1, 2026.

This would have had significant implications for investors holding high-value assets, especially real estate.

The proposed change introduced further complexity, requiring even more careful consideration of timing and asset disposition.

However, on March 21, 2025, Prime Minister Carney announced that the Government of Canada will cancel the proposed hike in the capital gains inclusion rate, maintaining the current 50% inclusion rate.

This decision has been welcomed by many in the investment and real estate sectors, as it preserves the current planning frameworks and alleviates concerns of increased tax burdens on large asset sales.

Real-World Example

Consider a scenario where an Ontario investor sells a secondary rental property for $1 million in 2025.

The original purchase price was $500,000, with $50,000 in eligible improvements and $40,000 in selling expenses, bringing the adjusted cost base to $590,000.

The capital gain is $410,000, and 50%—or $205,000—is taxable. Assuming the seller falls into the 33% marginal tax bracket, the tax owing on the gain could be approximately $67,650.

Had the proposed inclusion rate increase to 66.67% been implemented in 2026, the taxable portion would have been $273,347, with an estimated tax burden closer to $90,000—illustrating the significant impact such a policy change could have had.

Making Informed Decisions

The decision to sell a secondary residence or rental property in Canada carries notable tax consequences. Capital gains tax, while only applied to 50% of the gain (for now), can substantially affect your net proceeds. Properly accounting for selling expenses, potential CCA recapture, and the timing of the sale are all vital to reducing your tax liability.

For real estate investors, the key lies in understanding how the rules apply, what tradeoffs exist, and how to plan effectively. Working with a financial advisor or tax professional can help navigate these complexities, ensuring that your investment decisions align with both your financial goals and the tax landscape.

Need personalized guidance? Contact Gerald Lawrence to book a private consultation and learn how to maximize your returns when selling investment properties.

📄 For a Downloadable Guide (PDF format):

Your Guide to Capital Gains Tax in Canadian Real Estate

Understand the Rules, Avoid the Pitfalls, and Maximize Your Profits

Presented by: Gerald Lawrence, REALTOR® | www.GeraldLawrence.Realtor – Coldwell Banker R.M.R. Real Estate, Brokerage