Where Are All the Buyers?

Are buyers returning to the housing market?

After a slow spring, signs of renewed buyer interest are starting to emerge—especially as cooling prices, improved affordability, and stabilizing interest rates prompt more cautious shoppers back into the fray.

In the Greater Toronto Area, active listings have surged—up around 42% year-over-year—pushing the sales-to-new-listings ratio (SNLR) down to roughly 34%, clearly marking a buyer’s market. Yet despite the increase in available inventory, and despite textbook conditions favouring buyers, sales activity has remained quieter than expected.

Interestingly, May did bring some movement: home sales rose for a second straight month, climbing approximately 11–12% month-over-month. But compared to this time last year, overall sales were still down over 13%, and far below the activity levels seen during the same time last year.

So, What’s Holding Buyers Back?

We’re in what should be a buyer’s paradise:

• Interest rates have come down significantly since last year

• Home prices have adjusted across most property types

• Listings are sitting longer on the market

• Buyers finally have time to make decisions and negotiate on price

And yet, many potential buyers remain on the sidelines. Let’s unpack the numbers behind this buyer’s market mystery.

1. Inventory Explosion

With nearly 31,000 active listings on the market in May, buyers now have choices they haven’t seen in decades. For an area like the GTA, long used to fierce competition and lightning-fast sales, today’s environment feels unfamiliar. Buyers can compare, negotiate, and—imagine this—sleep on a decision. It’s a healthier, more balanced market, but the adjustment has been jarring.

For sellers, this means the strategies of the past no longer work. Pricing aggressively from day one is critical, and presentation matters more than ever. Homes now compete not just on price, but on quality, condition, and value.

2. Buyer Conditions Are Ideal—But Confidence is Fragile

While buyers have the upper hand in today’s market, many are hesitant. Years of bidding wars and being priced out have created a mindset of caution. Some are holding out for even better deals. Others are wary of broader economic conditions, including job security and inflation. And some simply don’t believe that a fair, buyer-friendly market could actually exist in the GTA.

3. Detached Homes Hold Their Ground

Detached homes continue to outperform other segments, with average prices dipping only slightly year-over-year. Inventory for detached properties remains relatively low, and demand persists—especially in desirable neighbourhoods. As a result, multiple offers are still occurring on well-presented homes, a reminder that while the broader market is slower, detached homes are playing by their own set of rules.

4. Homes Are Taking Longer to Sell

Homes are now taking an average of 26 days to sell, up from 19 days a year ago. But when you factor in re-listings and price reductions, the true time on market stretches to around 39 days. This gap reflects the real story: sellers are adjusting expectations mid-stream, and buyers are using the extra time to their advantage. The market is not just slower—it’s more strategic.

5. Where Are the First-Time Buyers?

Despite improved conditions, the entry-level market remains sluggish. Homes under $800,000 made up only 31% of sales in May, suggesting that many first-time buyers are still locked out.

Why are they missing?

• Even with price drops, affordability remains a barrier for many

• Mortgage stress test rates are still eliminating otherwise qualified buyers

• Economic uncertainty continues to make people cautious about major financial commitments

In short, this buyer’s market is benefitting move-up buyers more than newcomers. The fundamentals may be improving, but the affordability crisis hasn’t gone away—and that’s keeping an entire segment of potential buyers on the sidelines.

What’s happening in Markham?

According to TRREB data for May 2025, Markham’s average sold price was about $1,279,253, showing a modest 3% rise month-over-month but down 1% compared to last year. There were 256 transactions, up roughly 7.6% from April but nearly 10% lower than the same time last year.

The Bottom Line

Buyers: The market you’ve been waiting for is here. With more inventory, better pricing, and time on your side, this is a rare window to make a confident, informed purchase. But don’t wait too long—markets can shift quickly, and competition could return by fall.

Sellers: Strategy is everything. Today’s buyers are well-informed, cautious, and selective. Success in this market requires compelling pricing, strong marketing, and a willingness to adapt.

Market Outlook: With interest rates stabilizing and affordability edging up, early signs suggest that buyers are beginning to re-enter the market—slowly, and carefully. Summer could bring increased momentum, but for now, we remain in a market that feels… well, normal. And in GTA real estate, normal can feel surprisingly unfamiliar.