Pricing Right

The Power of Pricing Right in Toronto Real Estate

Posted September 2025

In Toronto’s dynamic housing market, setting the right asking price can make the difference between a home that sells in weeks and one that lingers for months.

Why Pricing Matters

• Too High: Overpricing drives buyers away. In today’s market—where average prices have slipped 5–8% year-over-year—buyers are highly sensitive to perceived value. An overpriced home quickly becomes “stale,” forcing price cuts later that may net less than if it were priced right from the start.

• Too Low: Underpricing can work in hot markets to spark bidding wars. But in today’s more cautious climate, it risks leaving money on the table if buyer confidence doesn’t match the strategy.

Toronto Market Conditions in 2025

• Detached homes: Buyers are patient and selective, expecting move-in-ready condition or a price concession.

• Condos: With values down sharply from peak, competitive pricing is critical—well-priced units still move quickly, while overpriced ones sit.

• Townhomes & Semis: This “middle market” often sees the strongest competition, but only if priced in line with current comparable sales.

How to Price Smart

1. Study Comparables (Recent Sold Data): Not just asking prices, but what actually closed in your neighborhood in the last 30–60 days.

2. Factor in Market Momentum: If prices are trending downward, today’s value is often lower than a sale two months ago.

3. Psychological Pricing: A home listed at $999,000 can capture more attention than one at $1,010,000, even though the difference is minor.

4. Professional Valuation: Use a Realtor’s CMA (Comparative Market Analysis) to balance statistical data with on-the-ground insights.

Bottom Line

In Toronto’s 2025 market, pricing right means pricing realistically. Sellers who adapt to current conditions attract the most serious buyers, sell faster, and often net higher returns than those who chase yesterday’s values.