Toronto’s real estate market is undergoing a dramatic shift — and it’s not the usual boom-or-bust cycle we’ve come to expect. According to a June 2025 market breakdown by Under the Radar Real Estate, the city is now effectively split in two: one market for move-in-ready, desirable properties, and another for listings that are sitting, languishing, and seeing price cuts. The full video is available here: https://www.youtube.com/watch?v=iJ5m5DcUVDE Video by: Under the Radar Real Estate YouTube Channel: https://www.youtube.com/@UnderTheRadarRealEstate
In this post, we’ll walk through some of the most insightful takeaways from the video, explain what’s driving this two-speed market, and explore how buyers, sellers, and investors can navigate the divide.
According to the host, Toronto is no longer functioning as one cohesive market. Instead, there’s a stark contrast between properties that are priced right, staged well, and in good locations — and everything else. In one lane, you have well-presented homes getting multiple offers or selling quickly. In the other, you have stale listings with high days-on-market, price reductions, or minimal buyer interest. The split isn’t just about property type, either. It’s happening across both freehold and condo markets, particularly in neighbourhoods that have seen inflated pricing over the last few years.
Interest rates have begun to stabilize, and while that’s increased buyer confidence, it hasn’t made them desperate. Buyers remain highly selective. Properties that check all the boxes are selling. Ones that miss the mark — even slightly — are being ignored or lowballed. This means that sellers can no longer rely on the “everything sells” mentality that dominated the market during peak pandemic years. The quality, pricing, and positioning of a listing now matter more than ever. The video points out that buyers are no longer rushing out due to FOMO (fear of missing out), but they are watching closely — ready to act when the right opportunity comes along.
One of the clearest examples of the market split is between Toronto’s condo and freehold segments. Condos, particularly in downtown and investor-heavy buildings, are still struggling. High carrying costs, elevated interest rates, and poor rental yield are keeping many investors on the sidelines. At the same time, inventory remains high, and many units are sitting on the market for months. On the other hand, detached homes and well-located townhouses — especially those in move-in-ready condition — are seeing stronger activity. Family buyers with stable incomes are actively looking, and in some pockets, competition is picking up again. The video explains that this divide will likely widen in the months ahead, as more investors offload underperforming condo units while end-users continue to pursue low-maintenance, livable homes.
The biggest takeaway for sellers is that you can’t price like it’s 2022. Homes that are priced based on emotional attachment or wishful thinking are being punished by the market. Price reductions and “relisted” tactics are becoming common — and buyers are wise to them. Sellers who want to succeed in this environment need to price based on today’s comps, not last year’s, stage professionally and invest in small upgrades, and be prepared for a longer selling window — unless their property is a true standout. The host emphasizes that this isn’t a crash — it’s a segmentation. But for sellers who don’t adjust, it can feel like a crash when their listing gets little to no attention.
Buyers, meanwhile, have more leverage than they’ve had in years — but only if they’re strategic. The best opportunities are often found in properties that have been sitting for 30+ days and may be overpriced or poorly marketed. With the right agent and approach, buyers can negotiate price reductions, better terms, or incentives like closing credits. But they should also be prepared: competition still exists for A+ properties, and sitting on the sidelines too long may mean missing the best deals before a broader recovery takes hold.
Toronto’s housing market in mid-2025 is defined by contrast. Sellers who adjust quickly can still win. Buyers who do their homework can find value. But trying to coast on old assumptions — from either side — won’t work.
To get the full breakdown, including neighborhood-level insights, watch the full video by Under the Radar Real Estate on YouTube: https://www.youtube.com/watch?v=iJ5m5DcUVDE