Entering the housing market as a first-time homebuyer can be a challenge. That is no more evident than over the last few years. Higher prices, interest rates, and limited inventory have hindered many from making that first purchase.
However, as of the summer of 2025, the hindrances above are alleviating. If you’re a first-time homebuyer or the parent of someone looking to enter the market, then this blog should help you decide if now is the time!
April 2024 vs April 2025
Comparing this past April to April 2024 reveals some stark differences. For example, let’s look at a condo apartment in the 416:
Purchase Price
2024: $766,433
2025: $710,724
Average Five-Year Fixed Mortgage Rate
2024: 5.19%
2025: 4.09%
Estimated Monthly Payment
2024: $3,342
2025: $2,733
Interest Cost (Five-Year Term)
2024: $151,497
2025: $110,111
Incentives and Rebates
The federal government has also offered rebates to assist first-time homebuyers enter the market, which we discussed in detail in a recent blog.
What does this mean?
First-time homebuyers have more leverage now than over the last five years. Housing supply is 73% above the five-year average, and a whopping 122% above the ten-year average!
And as evidenced by last month’s GTA Real Estate Market Report, the average price for all types of homes fell by 5.4% from June 2024 to June 2025.
And there’s never been so much inventory.
If you have children who are looking to enter the market, they should know that active listings continue to rise, with June featuring 31,603 homes for sale. That’s up 2.1% from May and a significant 30.8% higher than June 2024. That makes the second straight month that there are over 30,000 properties on the market! It gives buyers more choice and stronger negotiating power.
With improving financial conditions and increased inventory, now is an opportune time for you or your children to make a move.
The Market Game
If you believe the market will continue to decline, and you also consider a possible negotiation to secure an even lower price, you’re not off-base. It could happen.
But keep the existing positive numbers and conditions above in mind. The truth is there’s no crystal ball so no one really knows when the market will improve. The important thing is to make the smartest possible decisions with the information you have at hand.
The market could also rebound, and at some point it will. There may be more than a few folks stuck wishing they had entered the market during more favourable conditions.
If you’re unsure what to do, it’s important to balance sage real estate advice with a comprehensive overall financial plan.
Big decisions feel easier with the right advice — we’re here to help.
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