Toronto Prices Showing Resiliency In The Face Of Uncertainty

President Trump’s on again/off again tariffs have roiled financial markets and made business decision making very difficult. In spite of all this uncertainty, however, Toronto prices for houses and condos have been very similar to 2024 so far this year.

Houses

Toronto house prices in March are almost identically the same as they were last March. This is despite the fact that the inventory of homes for sale has been much higher than last year. We are in a balanced market, hovering in the 3-4 months’ supply range, as compared with 1-2 months’ supply last year, which was deep in sellers’ market territory. The elevated supply is reducing the number of bidding wars, but prices remain steady. This speaks to the large number of motivated buyers still active in the market, despite many buyers being sidelined due to Trump chaos.

Condos

The condo market is deep in buyers’ market territory, due in large part to the continuing impact of the rapid interest rate hikes in 2022 on condo investors. While rates are gradually coming down, and the condo market will eventually heal, interest rates are still too high for condo rentals to be profitable, and the inventory of condos for sale is very high. Similar to houses, inventory so far this year is much higher than last year, but prices are much closer. After being slightly lower in January and February, prices in March are almost exactly the same as last March.

Bottom Line

Toronto prices for both houses and condos are holding up very well this year despite elevated inventories of both. This resiliency of prices in the face of Trump chaos is very encouraging and suggests that the market could be strong in the second half if we see some resolution of the tariff uncertainties over the next couple of months.