A closer look at why people are selling—even when the market slows down
Toronto’s housing market has cooled noticeably in 2025. Home sales are down. Buyer urgency has faded. And unlike the red-hot years of the pandemic, many homeowners who might have wanted to move are now staying put. They’re waiting out high interest rates, inflation, or uncertainty.
But that doesn’t mean homes aren’t selling.
In this new market, it’s not ambition or opportunity that drives most sales—it’s necessity. People are still moving, but only because they have to. In real estate, these life circumstances are often referred to as the “5 D’s” and one R:
Diapers, Diamonds, Diploma, Divorce, Death, and Relocation.
1. The 2025 Market Reality: Sales Are Down, Inventory Is Up
Let’s start with what’s changed:
– Home sales are down significantly year over year
– Inventory is rising, especially in mid-range and high-end segments
– Prices are holding, but bidding wars are rare and buyers are cautious
April 2025 stats at a glance:
– 5,601 homes sold (–23.3% vs. April 2024)
– Active listings up +54% year-over-year
– Average sale price: $1,107,463 (–4.1% YOY)
– Months of inventory: 6.2 (balanced-to-buyer’s market)
This slowdown has shifted the tone of the market. People aren’t listing unless they truly need to move. And most buyers are waiting for the right deal—not rushing into anything.
2. What Still Drives Sellers? Life.
While discretionary moves are down, life doesn’t pause for the market. People still need to move when their circumstances change—no matter what interest rates or sales volumes are doing.
These are the real reasons homes are still selling:
Diapers
Families expecting a child—or with young children—often outgrow their space. A condo becomes too small. A walk-up becomes impractical. This is one of the most common reasons for upsizing, even in a hesitant market.
Diamonds
Marriage or moving in together often means combining households. Sometimes that leads to buying together; other times it means selling one property to prepare for a joint future.
Diploma
Kids leaving for university (or graduating) can trigger downsizing. On the other hand, some parents relocate closer to specific schools. Life stage shifts like these often force a decision.
Divorce
Separation almost always results in the sale of the family home. These transactions are usually time-sensitive and emotionally complex, but they remain one of the consistent drivers of listings in slower markets.
Death
When a homeowner passes away, the estate often lists the property—even if the market isn’t ideal. Heirs usually don’t wait for peak timing; they list based on probate or family timelines.
Relocation
New jobs, corporate transfers, retirement, or moving closer to family all fall under relocation. These moves come with deadlines—and sellers in this category can’t always afford to wait for a “better” market.
3. What Sellers Need to Know in 2025
Selling in a quieter market doesn’t mean selling at a loss. But it does require a different mindset and strategy—especially if your move is driven by life circumstances and not pure choice.
Here’s what to keep in mind:
Price realistically
Overpricing in this market leads to your listing sitting—and stale listings often attract lowball offers. Set your price based on what’s selling now, not last year.
Know your buyer
If you’re upsizing, your buyer might be a young family. If you’re downsizing, you’re likely marketing to a busy professional or investor. Tailor your staging, listing photos, and descriptions to speak to the right audience.
Prepare wisely
You don’t need a full renovation. But painting, cleaning, fixing visible issues, and staging smartly will make a big difference in today’s competitive market.
Be flexible
You might not get five offers in three days. But if you’re well-priced, well-presented, and marketed effectively, your home will sell. A clean, well-structured offer at 98% of asking is often better than waiting for a number that may not come.
Final Thought
The Toronto real estate market has changed—but life hasn’t. People are still moving. They’re just moving because they need to.
Whether it’s a growing family, a new beginning, or a major life transition, necessity-based sales are what keep our market moving in 2025.
If you’re thinking of selling because of a life event, I’d be happy to guide you through the process—with a clear, realistic strategy that matches your timeline and goals.
Send an email at olena@agentolena.com or call 647.294.3039 to get started.
