March 27th, 2025 | Buyers

How to Navigate Toronto’s Changing Real Estate Market as a Move-Up Buyer

For Toronto homeowners looking to upgrade to a larger home, the current market presents both challenges and opportunities. With inventory levels rising, prices stabilizing, and interest rates still a major factor in affordability, move-up buyers must take a strategic approach to ensure they’re making the right decision at the right time. Here’s what you need to know to successfully navigate today’s shifting market.

Selling First vs. Buying First: What’s the Right Move?

One of the biggest dilemmas for move-up buyers is whether to sell their current home before purchasing the next one. In today’s market, where listings are sitting longer and buyers have more options, selling first may be the safer bet. This approach allows you to secure your sale and know exactly how much equity you have to put toward your next purchase.

However, if you’re in a high-demand neighborhood or have a highly desirable property type, you may have more negotiating power. In this case, buying first could be an option—but only if you’re financially prepared to carry two mortgages temporarily or have bridge financing in place.

Pricing Realities: Selling in a More Competitive Market

If you’re planning to sell your current home, understanding the shift in buyer expectations is crucial. While prices aren’t in free fall, gone are the days of aggressive bidding wars on every listing. Buyers are looking for value, which means homes that are well-priced and well-presented are the ones getting attention.

Overpricing in this market is a surefire way to get stuck on the market longer than expected. A smart pricing strategy—aligned with comparable sales and current demand—will position you for success. If you’re hoping to sell quickly and move up efficiently, working with a real estate professional who understands these nuances is key.

Market Conditions: More Choices, More Leverage

The good news? As a buyer, you have more choices than you did a year ago. With inventory levels higher than previous years, move-up buyers can take their time, negotiate better terms, and even include conditions (like home inspections) that were once unheard of in Toronto’s hyper-competitive market.

Another factor to consider is the pace of price adjustments. With prices stabilizing in many segments, now may be the time to secure a deal before interest rate reductions bring more buyers back into the market later this year. Locking in your next home at a favorable price while selling strategically is the balancing act move-up buyers need to master.

Financing Smart: Making the Numbers Work for You

Interest rates remain a major factor for buyers at every price point. If you’re moving up to a more expensive home, ensure you’ve run the numbers with an updated mortgage pre-approval. Many move-up buyers underestimate the impact of today’s lending environment on their monthly costs, so having a clear understanding of what your next purchase means financially is crucial.

If you’re holding out for rate cuts, keep in mind that while lower borrowing costs may improve affordability, they can also bring more buyers back into the market, potentially driving up prices. The key is to focus on what works for you now rather than trying to time the market perfectly.

Final Thoughts: A Move-Up Buyer’s Market?

For those looking to move up, today’s market offers a unique window of opportunity. While selling may require a well-thought-out pricing and marketing strategy, buying presents an advantage that hasn’t been available in years—more options, more negotiating power, and less competition.

The best move-up buyers are the ones who understand the current market dynamics and make decisions based on their own long-term goals, not short-term speculation. If you’re considering making a move, now is the time to start planning, crunching the numbers, and positioning yourself for success in 2025’s evolving real estate landscape.

Need help figuring out your next step? Let’s chat about how to make your move-up strategy work in today’s market.