As the Toronto real estate market counts down to the final days of 2025, fresh properties are arriving on the market just as weary sellers pull listings on the verge of becoming stale.
Buyers are watching the shifting dynamics and savouring their clout.
Dino Capocci, real estate agent with Royal LePage Real Estate Services, says many buyers are submitting low offers, then refusing to budge.
“I don’t blame the buyers – how long was the shoe on the other foot?” Mr. Capocci points out, recalling the offer nights when a seller would receive nine offers and reject all of them.
The unsatisfied homeowner wanted more money, and determined buyers would be forced to return for a second round of bidding.
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Mr. Capocci is working with a pair of young professionals who submitted a bid of $3.15-million for a house near Avenue Road and Dupont Street.
The offer was far below the $3.595-million asking price, and the sellers signed back a counter-offer around the $3.55-million mark.
“My people walked,” says Mr. Capocci, explaining that the couple thought the two sides were too far apart to make a negotiation worthwhile. “They don’t feel any sense of urgency.”
Mr. Capocci has also been on the receiving end of lowball offers as a listing agent.
At 441 Oriole Parkway, he listed a six-bedroom detached house with an asking price of $6.25-million. The 10-year-old home has more than 5,000 square feet of above-grade living space.
“Now we’re at $5.3-million,” says Mr. Capocci. “They’ve given serious reductions,” he says of the sellers.
One buyer recently submitted an offer for $4.25-million.
“It was insultingly low,” says Mr. Capocci. “You don’t even sign back. You just move on.”
In late November, Mr. Capocci launched a detached house at 3 Saintfield Ave., with an asking price of $15-million.
A rendering of the home at 3 Saintfield Ave.LEBEL & BOULIANE
A couple from Copenhagen accepted a career move to Toronto and decided to build a contemporary family home in the Bridle Path area near Bayview Avenue and Lawrence Avenue East, Mr. Capocci says.
The five-bedroom house, designed by architecture firm Lebel & Bouliane, is 95 per cent complete, but the homeowners have been transferred back to Europe, he says.
The house is vacant, so Mr. Capocci decided to list in November rather than wait for the spring market when many more properties are likely to arrive.
He is not predicting a strong rebound in 2026.
“It’s going to be a difficult year, and I don’t think it matters when you come out,” he says. “If it’s a good house, people are still looking.”
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For homes that are occupied, he recommends waiting until the second week of January to list so that the homeowners do not have the disruption of showings during the holiday season.
Elena Saradidis, real estate agent with Royal LePage Signature Realty, recently listed a five-bedroom detached family home in Lytton Park with an asking price of $10-million.
Ms. Saradidis recommended listing the house at 207 Strathallan Blvd., in the last week of November because there is little inventory in the neighbourhood in that price range, she says.
“We have virtually no competition on the market,” she says.
This home at 207 Strathallan Blvd. was listed with an asking price of $10-million.Birdhouse Media
Many sellers have taken homes off the market, but buyers are continuing to browse, says Ms. Saradidis, who held an open house on the weekend.
She adds that a home in this price range will take longer to sell than those in a lower bracket.
After one week on the market, the seller had not received an offer, she adds, but she also knows of many buyers testing homeowners with lowballs.
She advises sellers not to take offence and to sign back a counter-offer. She tries to appeal to the buyer with details about renovations and improvements.
“Don’t ever let it die on your side,” she says. “There’s a deal to be made in every market.”
Patrick Perrier, director of forecasting at Bank of Nova Scotia, expects Canadian home prices will continue to face headwinds in the coming months.
The balance between supply and demand is relaxed, he says, and will likely ease further – partly because of slower population growth and economic uncertainty.
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Davelle Morrison, broker with Bosley Real Estate, expects properties to trade hands in December, but buyers are in no rush, she says.
“It’s definitely a very challenging market – whether you are a seller or a buyer,” she says.
The condo segment in particular is swamped with inventory, and buyers are not in the mood to wrangle.
“Obviously, you’re excited when you get an offer. But these days you’re excited to even get showings,” she says.
Ms. Morrison is often surprised at how unwilling buyers are to come up in price. Many buyers appear to be testing the market to find out which sellers are motivated, she senses.
“It almost feels like people don’t know how to negotiate,” she says. “If someone gives me a low offer, it’s just an invitation to dance.”
Still, the final days of the year are often a good time to strike.
“If you want to do a deal, make sure you buy in December,” says Ms. Morrison, who once helped a client purchase a house on Boxing Day.
Many buyers are able to benefit from fewer rivals circulating and sellers who would like a clean slate to start the new year.
“There are people who want something off the books for the year.”
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In some cases, sellers who list in the final month of the year really need to sell, she adds.
She often recommends that sellers leave homes on the market until Dec. 20 or so, then take a break if they want to celebrate Christmas.
She has been fielding calls from homeowners who have delayed listing in the hope of a jump in prices, but now many are planning to go ahead and list in early 2026.
Many homeowners continue to hope for a rebound, she says, but they also accept that the market may continue its current pattern.
“A surprising number are gearing up to list. People have been putting those decisions off for at least a year.”
Mr. Capocci has also been hearing from many potential sellers who are grappling with the question of when to list.
He believes it all comes down to their personal circumstances because many of the current trends will continue.
“2026 will be the same as this year. Hit and miss.”