Spring 2025 is shaping up to be a unique season for real estate buyers in Ontario, with the Greater Toronto Area (GTA) and London, Ontario standing out as key markets to watch. Whether you’re eyeing a home in Toronto’s bustling urban centre or a quieter, more suburban area like London, understanding market trends and the broader economic climate will be essential in making an informed decision.

If you’re considering buying a home in Ontario this spring, here’s a comprehensive overview of why it may or may not be the right time for you.

In recent years, Ontario’s real estate market has seen some significant fluctuations, with rapid price increases, followed by slowdowns, and even price corrections in certain areas. The GTA, as the largest market in Ontario, experienced steep price hikes during the pandemic and in the years that followed. However, as we head into spring 2025, we’re seeing signs of a more stable, balanced market.

• GTA Trends: The GTA real estate market is expected to be relatively stable heading into spring. Prices have levelled off, and the pace of sales has normalized, making it a potentially better time to buy compared to previous years. As inventory levels increase, buyers in Toronto may have more choices at more reasonable prices than during the high-demand years.
• London, Ontario Trends: In contrast, the London market has been more affordable compared to the GTA, but it’s also seeing growth. London has become increasingly popular for those looking to escape the high costs of Toronto while still being within commuting distance. As a result, prices have risen steadily over the past few years. Spring 2025 may offer buyers in London some opportunities to get in before prices rise further, but competition may be tighter as more buyers target this desirable city.

Interest rates have played a major role in Ontario’s housing market in recent years. After a series of hikes, they’ve somewhat stabilized. By spring 2025, many economists predict that interest rates will remain relatively steady, potentially offering a good opportunity for buyers who have been waiting for a more predictable lending environment.

• GTA Buyers: The GTA’s housing market is driven by both local demand and international interest, which keeps the prices high. While interest rates are expected to remain steady, buyers should still carefully assess their budget. A mortgage at a fixed or variable rate will influence long-term affordability, and it’s critical to work with a financial advisor or mortgage broker to lock in the best possible rate.
• London Buyers: For buyers in London, Ontario, the interest rates could have an even more noticeable impact. While prices may still be lower than in the GTA, affordability can still be a challenge if interest rates remain elevated. That being said, London may present a more favourable buying opportunity compared to Toronto if you’re looking for a more budget-friendly option.

Spring is traditionally a strong season for real estate listings, and 2025 should be no exception. Inventory levels in Ontario have been tight over the past few years, but signs are pointing to an increase in listings in the spring of 2025. This could offer more options for buyers, particularly in areas like the GTA and London.

• GTA Competition: The Greater Toronto Area remains a competitive market, particularly in sought-after neighbourhoods. However, with more listings expected to come onto the market, buyers may find more opportunities to negotiate prices or choose homes that meet their needs. It’s still important to act quickly in competitive neighbourhoods, as desirable homes tend to move fast.
• London’s Growing Market: London has experienced a rise in interest from buyers, with people moving from the GTA for more affordable options. While this has driven up demand, it also means more listings are likely to be available in spring 2025. The city is still considered a buyer’s market in many areas, but it’s crucial to be prepared for increased competition as more people recognise the value of the London market.

Ontario’s economy in 2025 is expected to show steady growth, with a focus on job creation and infrastructure development. The GTA, being a hub for various industries, is likely to see continued demand for real estate as more people relocate to the region for work. On the other hand, London is also benefitting from growing sectors like technology, healthcare, and education, making it an attractive option for homebuyers seeking more affordable living without sacrificing opportunities.

• GTA Economic Outlook: With the continued economic strength of the Toronto area, demand for housing should remain stable. However, the cost of living in Toronto means that many buyers are opting for suburbs or outlying areas. This shift could create opportunities for buyers willing to look outside the core, as commuter options improve with increased public transit infrastructure.
• London Economic Outlook: London’s economy is experiencing steady growth, making it an increasingly appealing place to buy. If you’re considering a move to London, the city offers a strong job market, particularly in sectors like tech, education, and healthcare. These economic factors are contributing to a growing demand for housing, and while prices are still lower than in Toronto, it’s important to act quickly to secure a desirable property.

If you’re thinking about buying a home in Ontario, spring 2025 is a great time to enter the market, provided you’re ready. Here’s why:

• For GTA Buyers: The market in the GTA is stabilising, offering more opportunities for those who’ve been waiting for the right time. Interest rates are expected to remain steady, making it a good opportunity to secure financing. However, be prepared for competition in high-demand neighbourhoods, as prices remain relatively high.
• For London Buyers: Spring 2025 may be the perfect time to buy a home in London. While prices have been increasing, the city still offers a more affordable alternative to the GTA. As more listings hit the market, you’ll have a better chance of finding a property that meets your needs at a reasonable price. If you’re also considering selling, be sure to check out our guide on How to Prepare Your Home for Sale in Spring 2025.