Summer 2025 Buyer’s Guide: How to Take Advantage of Slower Markets and Warmer Weather

Toronto's real estate market has shifted significantly. As of April 2025, the average home price in the Greater Toronto Area (GTA) was $1,107,463, marking a 4.2% decrease year-over-year. Notably, active listings surged by 51% compared to the previous year, reaching levels not seen since 1996.

This influx of listings has led to a sales-to-new-listings ratio (SNLR) of 30%, firmly placing Toronto in buyer’s market territory. Buyers now have more options and greater negotiating power, allowing for more favorable purchase terms.

Calgary: Balanced Market with Growing Inventory

In Calgary, the market is transitioning towards balance. April 2025 saw an average home price of $646,743, a 6.3% increase year-over-year. However, sales declined by 22.4%, and inventory levels rose by 116% compared to the previous year, reaching 5,867 units.

The SNLR in Calgary stands at 55%, indicating a balanced market. This environment provides buyers with more choices and the ability to negotiate, especially as sellers become more flexible to close deals.

Why Summer is Ideal for Buying

1. Reduced Competition: Many potential buyers take vacations during summer, leading to fewer competing offers and less pressure to make quick decisions.

2. Flexible Sellers: Sellers aiming to close before the new school year or fiscal quarter may be more open to negotiations, offering incentives or price reductions.

3. Favorable Weather: Summer's pleasant weather makes it easier to inspect properties, assess neighborhoods, and plan for renovations or moves without the challenges of winter conditions.

4. Mortgage Rate Opportunities: With the Bank of Canada implementing rate cuts earlier in the year, borrowing costs have decreased, making mortgages more affordable.

Tips for Summer Buyers

• Get Pre-Approved: Secure mortgage pre-approval to understand your budget and strengthen your negotiating position.

• Research Neighborhoods: Take advantage of the longer days to explore different areas, considering factors like amenities, schools, and commute times.

• Work with a Local Agent: Partner with a real estate professional who understands the local market dynamics and can guide you through the buying process.

Conclusion

Summer 2025 offers a strategic window for homebuyers in Toronto and Calgary. With increased inventory, favorable pricing, and the advantages of the season, it's an opportune time to make a move. By acting now, buyers can secure properties under favorable terms before potential market shifts in the fall.