Hey there — if you’re stepping into the housing market for the first time, welcome. I’m Clair from CB REAL — and trust me, I’ve been first-time buyer adjacent (flipping homes, doing renos, living the “what-did-I-get-into” ride) so I get it. Let’s b-real about what’s up in Toronto today vs the “good old” pre-COVID days — what’s changed, what’s the same, and how you can make it work.
First-Time Buyers in Toronto: 2025 vs. Pre-COVID — Let’s B-REAL About It
By Clair Balkowski, CB REAL
Buying your first home has always been a big deal—but in Toronto, it’s a whole other level of commitment, emotion, and strategy. Whether you’ve been dreaming about a condo in Leslieville, a freehold in East York, or a townhouse near the Danforth, stepping into the housing market in 2025 feels very different from what it did before COVID-19. So, let’s b-real about what’s changed, what’s stayed the same, and how first-time buyers can move confidently through today’s landscape.
The Market: Then vs. Now
Back in 2018 and 2019, before the pandemic upended everything, Toronto’s real estate market was defined by speed and competition. Low interest rates made borrowing easier, listings were scarce, and buyers had to act fast. Multiple offers were the norm, and the mindset for many was simple: “get in now before prices rise again.” It was a seller’s market through and through—driven by FOMO and fuelled by cheap money.
Fast-forward to 2025, and the tone has shifted. While affordability is still a challenge, conditions have finally started to tilt a little more toward buyers. The Toronto Regional Real Estate Board reported a modest uptick in sales this spring, driven largely by easing interest rates and improved affordability. Inventory has grown compared to the ultra-tight pre-COVID years, giving buyers a bit more breathing room. It’s not a buyer’s paradise yet, but it’s no longer an all-out sprint, either.
Lending rules have also evolved. The stress test introduced years ago is now an expected part of the process, and banks are taking a closer look at debt ratios, income stability, and total affordability. The result? A more cautious, measured market—one where buyers can make informed decisions instead of panicked ones.
The Buyer Experience in 2025
For first-time buyers, the biggest difference between pre-COVID and today’s market is mindset. Back then, buying felt like a race. Homes were selling within days—sometimes hours—of hitting the market. Today, there’s space to breathe. Buyers can visit a few more properties, compare value, and negotiate without the frenzy.
That said, interest rates have changed the math. Even though prices have stabilized, monthly mortgage payments remain higher than what they were five years ago. It’s important to stress-test your budget, look beyond the sticker price, and make sure the numbers work comfortably over time. The “cheap money” era is over, but what’s replaced it is arguably healthier—a market that rewards preparation and patience.
Inventory has also diversified. While freeholds in Toronto’s core remain expensive, condos and townhomes have become more accessible. Certain pockets, like The Beaches, Riverdale, and East York, continue to attract first-time buyers seeking community, character, and access to transit. Meanwhile, newer developments in Scarborough and North York offer more square footage for the price, appealing to young professionals and families seeking value without compromising on lifestyle.
Prices, Value, and Perspective
Pre-COVID, price appreciation in Toronto was relentless—homes seemed to gain value overnight. Today, growth is steadier. Many economists predict only a modest rise in prices through 2025, which gives buyers a rare chance to enter the market without chasing impossible gains.
This is where opportunity lives. Instead of buying under pressure, first-timers can focus on value: strong neighbourhood fundamentals, walkability, access to green space, and homes with flexible layouts that adapt to hybrid or remote work. These factors matter more than ever. A home isn’t just an investment—it’s where you build rhythm, balance, and the next chapter of your life.
What Hasn’t Changed
Even with all this evolution, some truths about Toronto real estate remain constant. You still need a solid down payment, reliable financing, and a clear sense of what you can afford. Location continues to drive long-term value—being near transit, good schools, and community hubs will always matter.
Equally important, buying your first home is still as emotional as it is financial. You’ll want to work with people who understand that: your mortgage broker, your lawyer, and your agent. Having a trusted guide can help you see possibilities you might otherwise miss and avoid costly surprises along the way.
Tips for First-Time Buyers Entering 2025
-
Budget beyond the mortgage. Account for closing costs, taxes, maintenance, and potential renovations. Build in a cushion—you’ll thank yourself later.
-
Stress-test your affordability. Even as rates dip, plan for fluctuations. Stability is the new superpower.
-
Look for real value. Focus on homes and neighbourhoods that fit your lifestyle, not just what’s trending.
-
Work with people who get you. The right professional doesn’t just open doors—they help you see what’s possible.
-
Think long-term. Real estate is still about time in the market, not timing the market. Choose a home that can grow with you for at least the next five to ten years.
Why 2025 Might Be Your Moment
For all its challenges, 2025 could be the best time in years for first-time buyers to act. The feverish pace of the past has cooled, competition has eased, and sellers are more open to negotiation. If you’ve been waiting for a chance to enter the market with confidence, this could be it.
You may not get the lowest rate in history, but you’ll get the chance to buy thoughtfully—to choose a home that fits your real life, not just your budget. That’s a powerful shift.
The CB REAL Take
At CB REAL, we believe real estate isn’t just about transactions—it’s about transformation. Helping first-time buyers step into ownership is one of the most rewarding parts of what I do. I’ve been where you are: weighing numbers, balancing emotions, wondering if now is the right time. The truth? There’s no “perfect” moment. There’s only preparation, clarity, and courage.
Let’s b-real about your future. If you’re ready to explore what buying in Toronto could look like for you in 2025, reach out for a strategy session. We’ll walk through your goals, your numbers, and your next steps—together.
– Clair Balkowski
Realtor®, CB REAL – Royal LePage Signature
“Let’s b-real about your future.”
