The Toronto real estate market is no stranger to headlines, but recent trends are sparking new conversations—especially around the growing number of lowball offers being submitted to sellers. Whether you're buying or selling, understanding what's happening behind the scenes can help shape your strategy and set realistic expectations.
A Fragmented Market Landscape
In 2025, the Toronto market isn’t functioning as a monolith. Instead, it’s better understood as a mix of smaller sub-markets, each with its own dynamics.
The condo market is particularly segmented. Smaller studio and one-bedroom units—especially in downtown towers—have been lingering on the market. These units, often purchased by investors during pre-construction phases, now make up the bulk of unsold inventory. In contrast, two-bedroom condos and unique loft-style units remain highly desirable and continue to sell quickly.
In the freehold market, both semi-detached and detached homes in prime neighbourhoods are showing surprising strength. While homes needing extensive renovations are moving slowly due to high construction costs and uncertainty around future expenses, move-in-ready homes in top areas are still commanding strong offers.
Rising Prices in Key Segments
Despite national headlines that often paint a gloomy picture, the City of Toronto (416 area) has seen price growth in certain segments. Detached homes are up 1.1% year-over-year, with an average price now around $1.7 million. Semi-detached homes have jumped nearly 3%, reaching an average of $1.337 million. These increases highlight the continued demand for quality freehold homes in the city, even amid broader market hesitation.
The Reality Behind Lowball Offers
A recent article in The Globe and Mail described a now-sold home on Delaware Avenue. Listed just under $2.7 million, it received a lowball offer of $2.1 million. That offer was rejected—and the property ultimately sold for $2.75 million.
This example illustrates a critical point for buyers: going in too low may cost you the deal entirely. In a market where desirable homes are still competitive, especially in sought-after neighbourhoods, offers far below asking may not be taken seriously. In fact, they may push sellers to wait for stronger bids or drive other motivated buyers to step in.
Another home on Roxborough Street also received multiple lowball bids in the $1.9–$2 million range before ultimately selling for nearly $2.1 million. While not every case ends in a bidding war or above-asking sale, these examples show that overly aggressive offers can backfire—especially when the asking price is already aligned with comparable properties.
Why Sellers Should Be Strategic, Too
While lowball offers are frustrating for sellers, it's important to view them as part of a broader market narrative. Properties that are priced too ambitiously or don’t present well tend to sit on the market, prompting bargain hunters to test the waters.
Sellers can minimize this risk by ensuring their properties show well and are priced competitively based on current comparables. In today’s market, even a slightly inflated price or minor cosmetic issue can send buyers to the next available listing.
Market Activity and What’s Ahead
Sales activity in the Greater Toronto Area hit historic lows in February and March, with March posting the slowest numbers since 1995. However, this drop is not necessarily the start of a prolonged downturn like in the 1990s. Analysts point instead to short-term uncertainty related to geopolitical factors, economic trends, and the federal election.
Interestingly, while sales volumes have dipped, listings are still coming to market—and well-priced, well-maintained homes are continuing to sell. In some cases, sellers are standing firm and pushing back against opportunistic offers.
For Buyers: Success Comes from Strategy
Buyers who want to succeed in this environment should go beyond the tactic of submitting low offers across multiple properties. Understanding true market value and approaching sellers with fair, informed offers is proving to be more effective.
If a property is priced appropriately, offering just slightly below market value (while still leaving room to negotiate) often results in a better outcome than taking a deep-discount approach that might be ignored or quickly rejected.
For Sellers: Presentation and Price Are Key
On the seller side, the formula remains consistent: homes that show beautifully and are priced based on realistic comparables tend to sell. Those that require work or are priced optimistically tend to sit, attracting only the most aggressive buyers hoping for a significant discount.
The Road Ahead
With the spring market now underway and warmer weather around the corner, the big question remains: will we see a surge in activity heading into the summer? A combination of better weather, greater economic clarity, and the conclusion of the federal election may bring renewed energy to the market.
In the meantime, buyers and sellers alike would benefit from staying informed and realistic. The Toronto real estate market is still full of opportunities—but only for those who approach it with clarity, strategy, and a solid understanding of today’s conditions.
A Fragmented Market Landscape
In 2025, the Toronto market isn’t functioning as a monolith. Instead, it’s better understood as a mix of smaller sub-markets, each with its own dynamics.
The condo market is particularly segmented. Smaller studio and one-bedroom units—especially in downtown towers—have been lingering on the market. These units, often purchased by investors during pre-construction phases, now make up the bulk of unsold inventory. In contrast, two-bedroom condos and unique loft-style units remain highly desirable and continue to sell quickly.
In the freehold market, both semi-detached and detached homes in prime neighbourhoods are showing surprising strength. While homes needing extensive renovations are moving slowly due to high construction costs and uncertainty around future expenses, move-in-ready homes in top areas are still commanding strong offers.
Rising Prices in Key Segments
Despite national headlines that often paint a gloomy picture, the City of Toronto (416 area) has seen price growth in certain segments. Detached homes are up 1.1% year-over-year, with an average price now around $1.7 million. Semi-detached homes have jumped nearly 3%, reaching an average of $1.337 million. These increases highlight the continued demand for quality freehold homes in the city, even amid broader market hesitation.
The Reality Behind Lowball Offers
A recent article in The Globe and Mail described a now-sold home on Delaware Avenue. Listed just under $2.7 million, it received a lowball offer of $2.1 million. That offer was rejected—and the property ultimately sold for $2.75 million.
This example illustrates a critical point for buyers: going in too low may cost you the deal entirely. In a market where desirable homes are still competitive, especially in sought-after neighbourhoods, offers far below asking may not be taken seriously. In fact, they may push sellers to wait for stronger bids or drive other motivated buyers to step in.
Another home on Roxborough Street also received multiple lowball bids in the $1.9–$2 million range before ultimately selling for nearly $2.1 million. While not every case ends in a bidding war or above-asking sale, these examples show that overly aggressive offers can backfire—especially when the asking price is already aligned with comparable properties.
Why Sellers Should Be Strategic, Too
While lowball offers are frustrating for sellers, it's important to view them as part of a broader market narrative. Properties that are priced too ambitiously or don’t present well tend to sit on the market, prompting bargain hunters to test the waters.
Sellers can minimize this risk by ensuring their properties show well and are priced competitively based on current comparables. In today’s market, even a slightly inflated price or minor cosmetic issue can send buyers to the next available listing.
Market Activity and What’s Ahead
Sales activity in the Greater Toronto Area hit historic lows in February and March, with March posting the slowest numbers since 1995. However, this drop is not necessarily the start of a prolonged downturn like in the 1990s. Analysts point instead to short-term uncertainty related to geopolitical factors, economic trends, and the federal election.
Interestingly, while sales volumes have dipped, listings are still coming to market—and well-priced, well-maintained homes are continuing to sell. In some cases, sellers are standing firm and pushing back against opportunistic offers.
For Buyers: Success Comes from Strategy
Buyers who want to succeed in this environment should go beyond the tactic of submitting low offers across multiple properties. Understanding true market value and approaching sellers with fair, informed offers is proving to be more effective.
If a property is priced appropriately, offering just slightly below market value (while still leaving room to negotiate) often results in a better outcome than taking a deep-discount approach that might be ignored or quickly rejected.
For Sellers: Presentation and Price Are Key
On the seller side, the formula remains consistent: homes that show beautifully and are priced based on realistic comparables tend to sell. Those that require work or are priced optimistically tend to sit, attracting only the most aggressive buyers hoping for a significant discount.
The Road Ahead
With the spring market now underway and warmer weather around the corner, the big question remains: will we see a surge in activity heading into the summer? A combination of better weather, greater economic clarity, and the conclusion of the federal election may bring renewed energy to the market.
In the meantime, buyers and sellers alike would benefit from staying informed and realistic. The Toronto real estate market is still full of opportunities—but only for those who approach it with clarity, strategy, and a solid understanding of today’s conditions.
