In 2025, Etobicoke real estate trends suggest that buying and selling properties in the region is only going to gather momentum. After a few years of high interest rates, high prices to build new homes, contractor shortages, and stalled condo markets in Toronto, this year marks the start of more attractive conditions in GTA real estate. Whether you are a buyer or seller, there is lots to be excited about.

Here is what the experts are saying about Etobicoke real estate and where it’s likely headed in the next twelve months.

Etobicoke Real Estate Data

Toronto Regional Real Estate Board data from 2024 suggests South Etobicoke real estate will remain strong into the next year. Here are some promising statistics suggesting increased interest in real estate investing in this part of Etobicoke.

  • Average days on the market: 22
  • Average home price sold: $1.24 million
  • List to sales price ratio: 103.36%

Housing Supply Shortages Are Expected To Continue

There is a limited supply of new housing developments in Etobicoke and Toronto as a whole. For years, this has negatively impacted the market for affordable housing and entry-level homes. This will only continue.

As demand for housing in Etobicoke outpaces supply, this puts some hope in the pockets of sellers.

Hoping to buy a home in the new year? Have a look at these related blogs for more advice!

Expect More Homes Sold In Etobicoke

Many experts predict total Etobicoke real estate sales will increase by 12-15% in 2025.

This is expected to occur predominantly from existing home-buyers who are moving up rather than first-time Toronto home-buyers. In the next year, first-time home buyers are expected to make up only 10% of total buyers compared to the usual 30-40% that they usually make up.

Difficulty Qualifying For A Mortgage For First-Time Buyers

There are major affordability challenges relating to down payments and mortgage costs for first-time homebuyers.

To qualify for a mortgage, a home-buyer must pass a stress test sitting at 6%. The minimum qualifying rate is 5.25% for uninsured mortgages or two percentage points higher than the mortgage rate being offered. Unless a buyer has a significant amount of support, such as parental assistance, fewer people can qualify for a mortgage.

Interest Rate Cuts Are Influencing GTA Real Estate

There is no way to know how far the Bank of Canada will cut interest rates. As of December 4, 2024, the interest rate is at 3.75%.

According to predictions, many experts suggest interest rates will continue to see cuts, however, there are no guarantees. Hopeful Canadian homeowners remain hesitant to buy real estate with such uncertainty in the air.

Affordability In Etobicoke Real Estate

A seller is more likely to find a buyer today than they have been in recent years. This has everything to do with the affordability of Etobicoke real estate and an increase in choices from buyers wanting to sell. This is what is spurring more interest from home buyers, real estate investors, and immigrants.

That said, overall, Etobicoke home prices are expected to remain more or less flat, neither rising nor decreasing.

Planning to sell your home in 2025? Read these blogs next!

Downtown Toronto Residents Prefer Living In Etobicoke

Post-pandemic, more people in Toronto are looking at the affordability of neighbourhoods in regions such as Etobicoke.

There continues to be an exodus, spurred by remote work and other factors, moving more downtown Toronto residents into areas like Etobicoke.

More Conditional Offers From Home-Buyers

Buyers will continue to make more conditional offers and many sellers will be more open and accepting of them. These are offers conditional on financing or a home inspection, ensuring a buyer’s able to make an informed decision.

It’s already not uncommon to have fairly developed negotiations prior to closing a real estate sale.

Increased Demand For Rental Properties In Etobicoke

For real estate investors seeking to turn Etobicoke homes into rental properties, the demand is there and growing.

Rental prices in Toronto and similar neighbourhoods, including parts of Etobicoke near transit lines, are likely to increase in the 6-8% range. Investors looking for rental income can find high rental yields in South Etobicoke and the surrounding area.

Government Policy Will Influence Etobicoke Real Estate

There are several government policy and regulatory changes that may impact the Etobicoke real estate market in 2025.

  • Ontario presently has a target to build 1.5 million homes by 2031. The majority of these are expected to be around Toronto, including in Etobicoke. If this occurs, it may help ease supply constraints.
  • The current foreign buyer ban on Canadian real estate initiated in 2023 expires this year. If the policy is not renewed, this increases interest from international investors looking at good investment properties in Toronto.
  • It is possible the government may introduce new measures relating to housing affordability. Any regulatory shifts in this regard could impact home prices as well as rental demand in the Etobicoke area.

Growth In Detached Homes And Suburban Properties Over Condos

Condos are seeing difficulty cultivating interest in Toronto. In the meantime, detached homes and suburban properties are seeing stronger growth as the demand for spacious housing is still prominent among many home-buyers and families.

As the oversupply of condos continues to negatively impact condo sales, detached homes in Etobicoke remain strong.

Market Favours Buyers Over Sellers In Toronto

It’s expected that 2025 in Etobicoke real estate will see market conditions favour buyers over sellers.

This is due to less competition, fewer bidding wars, and more properties being on the market over the next twelve months. Sellers can expect an increase in average selling time which may be extended to as long as 30-35 days on the market in some neighborhoods.

Buyer Mentality

More homes are available in Etobicoke. Borrowing rates are easing. Jump in now before the competition tightens.

Seller Mentality

There will be strong buyer interest this year and stable prices to keep the market active. List today and there’s the potential of closing a strong sale this year.

Are You Looking To Buy Or Sell Etobicoke Real Estate In 2025? Call Us!

For buyers and sellers alike, now may be the right moment to make your move.

If you’re looking to buy or sell, let us help. Adrian + Andrea will be there to help you navigate the challenges ahead and ensure you maximize your sale or purchase so that it’s right for you. Get in touch with us by email at info@adrianandrea.com or call (416) 319-6893.