While most house hunters hibernate during the winter months, smart buyers know that the coldest months usually offer the best opportunities in Toronto’s real estate market. Here’s what you need to know about house hunting when the temperature drops.
Why Winter House Hunting Makes Sense (especially in 2025)
Opportunity: Lower Prices in an Increasing Market
Toronto’s housing market has a timing challenge: eager buyers are typically ready before sellers, who often delay listing their homes until warmer weather arrives. This imbalance is one of the reasons prices tend to rise fastest in the first months of the year – low inventory fuels bidding wars, driving prices up. But those new (higher) benchmark prices carry forward in a market where prices are increasing – which can mean a big difference between how much you pay for a home in January vs. September.
Toronto’s real estate market is expected to have a robust year in 2025:
1 – Interest rates decreased 5 times in 2024, taking the Bank of Canada’s overnight night from 5% to 3.25%. On a million-dollar mortgage, that’s $916 in payment savings per month.
2 – Changes to mortgaging financing rules – On December 15, 2024, new rules came into effect allowing first-time insured buyers (ie those with a downpayment less than 20%) to extend the repayment of their mortgage to 30 years (from 25 years). The changes also allow all home buyers with downpayments of less than 20% to buy a property up to $1.5 million (up from $1 million). These changes will help first-timers get in the market more affordably and give upgraders more flexibility and bigger budgets.
3 – There’s a LOT of pent-up demand in the Toronto market – The real estate roller coaster of the last 2 years saw the volume of sales in 2023 and 2024 down more than 25% vs the 10-year average. That’s almost 50,000 expected sales that didn’t happen.
While there are still unknown variables that will impact the real estate market (interest rates, tariffs, Trump, the Canadian election, etc.), almost everyone agrees: house prices in Toronto are likely to rise in 2025.
2025 Opportunity: Good to Great Inventory
In pre-pandemic years, the winter months were infamous for excessively low inventory. Home buyers were ready and wanted to get in before prices increased – but there was so little to choose from. For many buyers, that meant frustrating bidding wars, buying before selling (which delayed inventory even more) and spending months househunting but still getting caught up in higher prices
The best news for 2025 buyers: we actually have a decent inventory of houses for sale in Toronto – and a LOT of condos. In fact, we have twice as many condos for sale as usual…which means not only do buyers have choice, but they have negotiating power, too.
Motivated Sellers
People selling during winter often have compelling reasons to move. Whether selling is due to a job relocation, financial changes, or personal circumstances, winter sellers are typically more motivated to make a deal.
See Homes at Their “Worst”
Viewing homes during harsh weather reveals potential issues that might be hidden in spring and summer. That charming Victorian in Leslieville? Winter visits might expose:
- Draft issues around windows and doors
- Snow accumulation problems on the roof
- Heat distribution inefficiencies
- Winter parking challenges
- How well the property handles Toronto’s freeze-thaw cycles
Buying a Home in the Winter: What to Watch For
If you’re househunting in the winter, you need to be extra cautious.
Access Issues
Snow and ice can limit access to important areas of inspection:
- Roof
- Foundation walls
- Drainage systems
- Outdoor electrical elements
- Decks and porches
- Pools, hot tubs and saunas
Pro Tip: Ask for photos or documentation from other seasons, particularly of the roof, foundation, and landscaping.
Pool People: If you’re buying a house with a pool (which obviously can’t be inspected in winter), make sure your REALTOR includes legal clauses in the sale agreement to protect you in the event of any issues with the pool or equipment in the spring.
Weather-Related Viewing Challenges
Winter viewings require extra planning:
- Schedule viewings during daylight hours
- Allow extra time in between showings for weather-related traffic and parking challenges
- Bring a flashlight for darker corners and basements (or just use your phone)
Pro Tip: Wear slip-on boots for easy removal at showings.
Hidden Features
Snow can conceal important exterior elements:
- Property boundaries
- Garden beds and landscaping
- Potential drainage issues
- Driveway condition
- Foundation problems
Pro Tip: Hire a reputable home inspector and make sure you attend the home inspection. While inspectors can only inspect what they can access, they can spot winter-specific red flags that will guide you to do further due diligence if required.
Smart Winter Buying Strategies
Request Additional Documentation
Ask for:
- Summer photos of the yard and exterior
- Recent utility bills (especially heating costs)
- Documentation of any winter-specific maintenance
- Records of any weather-related repairs
Focus on Winter-Specific Features
Pay special attention to:
- Heating systems and insulation
- Weather stripping and draft prevention
- Garage or parking accessibility
- South-facing exposure for natural heat and light
- Snow removal requirements
Making Your Winter Purchase Successful
When buying in winter:
- Get Pre-Approved for a Mortgage: Winter markets can move quickly when the right property appears. Make sure your deposit is accessible and get your financing in place before you fall in love.
- Build Your Team: To help you buy a home, you’ll need more than a REALTOR – you need a reputable home inspector (for houses), a mortgage broker who can move quickly and a solid real estate lawyer. When deciding who to hire, make sure to ask about any winter vacation plans they have and how that might affect you. Consider hiring a real estate team with built-in back-up agents so you never miss a property because your agent is on a beach.
- Be Prepared:
- Have a flexible schedule for viewings
- Keep emergency supplies in your car
- Maintain a list of winter-specific questions for each property
- Document everything with photos and notes
- Wear slip-on boots
Buying a house in the winter is less comfortable than in the summer…but isn’t everything? 😜
In 2025, the coldest months of the year will likely coincide with the sweetest spot in Toronto’s real estate market this year….where good inventory, lower prices and lower interest rates intersect. Ready to get started?
