Understanding the dynamics of a buyer’s market, seller’s market, and balanced market is essential when navigating real estate—especially in a fast-moving city like Toronto. These market types impact pricing, competition, and strategy, and each one comes with specific implications depending on whether you're buying or selling a home.Let’s explore what each market condition means and what the current numbers from the Toronto Regional Real Estate Board (TRREB) tell us about where things stand right now.
What Is a Buyer’s Market?
A buyer’s market happens when there are more homes for sale than there are buyers. This surplus of inventory gives buyers the upper hand in negotiations.Implications for Buyers:- More listings to choose from.
- Greater potential for negotiating lower prices or better terms.
- Homes may sit on the market longer.
- Pricing competitively becomes critical to attract serious buyers.
What Is a Seller’s Market?
In a seller’s market, demand outpaces supply—there are more buyers than available homes. This often results in bidding wars and rising prices.Implications for Buyers:- Fewer listings and more competition.
- Pressure to act quickly and potentially go over asking price.
- Faster sales.
- Opportunity to sell above listing price in high-demand areas.
What Is a Balanced Market?
A balanced market exists when the number of buyers and sellers is roughly equal, leading to stable home prices and average time on market.Implications:- More predictable market conditions.
- Fairer negotiations for both parties.
🔎 Where Is Toronto’s Market Right Now?
As of early 2025, Toronto’s market is leaning clearly toward a buyer’s market. According to TRREB:- February 2025 home sales were down 27.4% year-over-year.
- New listings were up 5.4%, with active listings increasing by 76%.
- The average selling price fell by 2.2% compared to February 2024, to $1,084,547.