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Toronto Real Estate 2025: The Surprising Resilience of Key Neighbourhoods

Amid widespread headlines of a cooling Toronto real estate market, certain neighbourhoods within the city continue to buck the trend. While 2025 has seen some of the slowest sales activity in recent memory across the Greater Toronto Area (GTA), not all pockets are experiencing the same downturn.

Buyers exploring a move within the city are often surprised to learn that several sought-after areas remain highly competitive, with multiple-offer scenarios still playing out. This contrast underscores the importance of focusing on micro-markets rather than broad, city-wide statistics.

Many buyers living in condos near the downtown core—whether Liberty Village, King West, or the St. Lawrence Market—are naturally looking to the east or west for more space. This often brings them into established residential enclaves like High Park, Riverdale, The Beaches, or even Summerhill and Bedford Park. These neighbourhoods are consistently popular due to their access to transit, parks, restaurants, and other amenities—offering the best of both worlds: space and connectivity.

A recent Toronto Star article identified these locations as part of the city’s real estate “Hot Pockets”—areas continuing to show strong year-over-year sales growth despite overall market cooling. These include:
  • South Parkdale & High Park/Swansea (+56%)
  • Yonge-St. Clair & Casa Loma (+31%)
  • Beaches, Woodbine Corridor, and East Danforth (+27%)
  • Junction and Bloor West Village (+26%)
  • Highland Creek, Centennial Scarborough & Rouge (+15.6%)

These numbers reflect detached home sales, but if semi-detached properties are included, the strength is likely even greater. In neighbourhoods where detached homes easily exceed $2 million, semis often serve as an accessible step-up for condo owners—especially those priced between $850,000 and $1.2 million. However, affordability in these areas is relative. In some cases, $850,000 will only secure a fixer-upper or a bungalow needing work.

What’s driving this sustained interest? Simply put: lifestyle. Buyers are willing to pay a premium to remain within walking distance of schools, transit, parks, shops, and vibrant communities. For those used to urban convenience, moving too far out of the core is not always appealing.

It’s also important to understand that Toronto behaves differently from the broader GTA. While reports may group them together, the GTA spans nearly two hours in each direction—making comparisons between central Toronto and outer suburbs like Oshawa or Newmarket misleading.

For buyers and sellers alike, understanding these local dynamics is essential. Whether upgrading from a condo or looking for a longer-term family home, knowing where the demand remains strong can significantly impact your strategy.

As 2025 continues, we’ll keep tracking these micro-markets and highlighting the neighbourhoods that remain active and competitive. Stay tuned for more updates on pricing trends, inventory levels, and buyer behaviour across Toronto’s ever-changing real estate landscape.