March 2025 recorded the lowest number of home sales since 1998 in the GTA, and April and May were no better. Surprising? Maybe. Concerning? That depends on who you ask.
In this episode of The Real Estate Podcast, we broke down what’s really happening in the market, why some sellers are struggling to price realistically, and how buyer hesitation (and bad advice) keeps the real estate world in a bit of a stall. Let’s unpack it.
📉 What’s Going On with the Market Right Now?
According to the Toronto Real Estate Board, this past March saw the fewest number of home sales for the month since 1998, despite a much larger housing inventory today. That stat alone is enough to raise eyebrows, but when you dig deeper, it starts to make sense.
While there are still multiple-offer situations happening, those are few and far between, and often on very average homes. Most properties are just sitting—many of them overpriced based on outdated expectations from sellers.
💸 Sellers, It’s Time for a Reality Check
One of the biggest roadblocks we’re seeing is that many sellers are basing their list prices on hope rather than reality. And worse—they’re listening to neighbours, friends, and random advice from people who aren’t in the market.
We shared examples of sellers refusing to price in line with the market, only to end up slashing their asking price weeks later… or being stuck in limbo.
💡 Key takeaway: Pricing based on what your neighbour thinks your home is worth will cost you. Hire a pro, and trust their process.
🧠 The Psychology Behind “Did We Leave Money on the Table?”
Even when a home sells quickly for a fair price, some sellers experience regret or second-guessing. We talked about how that fear can lead to unnecessary delays or unrealistic expectations.
Sellers who trust their agents, follow recommendations, and commit to smart pricing strategies usually walk away with better results, not just financially, but emotionally.
📊 Interest Rates, Stock Markets & Elections: What’s Influencing Buyer Behaviour?
Beyond pricing, there are external factors contributing to buyer hesitation, including:
Interest rate uncertainty
Stock market dips affecting down payments
Upcoming elections in Canada and the U.S.
General economic hesitation
Buyers who had money tied up in stocks or ETFs are seeing losses, which delays their ability to buy. Meanwhile, many are sitting on the sidelines, waiting to see what interest rates and political outcomes bring over the next few months.
But as we discussed, these buyers won’t sit out forever.
🔮 What’s Next for the Market?
We’re cautiously optimistic. Once some of this uncertainty clears—especially post-election—we expect demand to pick up, particularly from buyers who’ve been waiting on the sidelines.
That said, we don’t expect a massive spike or crash. More likely, we’ll see a slow but steady uptick in activity through the second half of the year.
🗣️ Final Thoughts: Work with Pros, Ignore the Noise
At the end of the day, the market isn’t crashing—it’s just resetting. The smartest move for both buyers and sellers right now is to work with experienced agents who understand the local landscape and can guide you through this weird, transitional phase.
👂 Listen to professionals. Ignore the armchair experts. And price your home to sell—based on today’s market, not last year’s.
🎧 Catch the full episode of The Real Estate Podcast for more real talk and market insights.
📩 Thinking of selling or buying soon? Let’s chat.
