Home Sales Are Up, But Listings Are Low: Where Are The Sellers?

In an unexpected twist this year, home sales are on the rise—but sellers seem to be missing in action. Across major Canadian cities like Toronto, Newmarket, and Mississauga, buyers are re-entering the market in full force despite high interest rates. But with inventory still at rock-bottom levels, bidding wars are making a dramatic comeback, especially for homes priced under $1 million.

So what’s really going on? Why aren’t more Canadians listing their homes, and what does this mean for buyers and sellers in 2025?

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Where Did All the Sellers Go?

While buyer activity is increasing, many homeowners are sitting tight. The expected wave of forced sales due to mortgage stress hasn’t materialized—largely because homeowners are still sitting on equity and have managed to ride out rate hikes.

But the downside of this seller hesitancy? A dangerously low housing supply that’s already beginning to push prices up again. With more buyers competing for fewer listings, affordability is taking another hit, especially in and around the GTA.

Understanding Market Types

What’s a Buyer’s Market?

When listings outnumber interested buyers, it becomes a buyer’s market. Homes stay on the market longer, prices dip, and buyers gain negotiation power.

What’s a Seller’s Market?

When demand outweighs supply—as is the case now—homes sell quickly, often for above asking price. Sellers hold the upper hand, and buyers have fewer options.

With most of Canada showing a sales-to-new-listings ratio (SNLR) above 70%, we’re deep into seller territory.

Why Aren’t Sellers Listing?

1. Lack of Replacement Options

Many would-be sellers are afraid they won’t be able to find a new home once theirs is sold. With inventory so limited, they’re hesitant to list without a solid plan for their next move.

2. Waiting for Higher Prices

Sellers are getting bolder as demand rises. Some are holding out for higher offers, encouraged by stories of homes receiving 20+ bids and selling within days.

3. Cost of Upgrading

Even if a seller finds a new home, the cost of trading up in this market—combined with higher mortgage rates—makes the move financially unappealing for many.

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Affordable Homes: Hot Property

While million-dollar listings linger, affordable homes—especially condos and smaller detached properties—are flying off the market. Data shows that sub-$1M homes attract intense bidding wars, especially in GTA suburbs.

First-time buyers are flocking to these listings, but competition is fierce. Some agents report homes getting more than 20 offers, even in outer urban areas.

“Despite growing concerns about declining home prices and financial stability, home sales have picked up — but listings remain scarce, leaving many to wonder where the sellers are.”

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Should You Sell in 2025?

If you’ve been thinking about selling, this might actually be your moment. With demand surging and interest rates stabilizing, sellers in hot markets can still command top dollar.

But it comes with caveats. Be prepared to act quickly if you sell—especially if you haven’t yet secured a new place. Consider temporary housing or negotiating a longer closing period if needed.

Selling an entry-level or mid-range home? You’ll likely see strong interest and quick offers.

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What This Means for Buyers

Buyers need to stay nimble. With low inventory and high demand, hesitation can cost you your dream home. Here’s how to prepare:

• Get pre-approved before you shop
• Work with a realtor who specializes in your area
• Move fast when you find a match

If you’re a first-time buyer, especially in the affordable housing range, make sure your finances are locked in.

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Final Thoughts

Canada’s housing market is heating up again—but without enough listings, it’s causing headaches for both sides. Buyers face competition and rising prices. Sellers face uncertainty about where to go next.

Whether you’re buying or selling, the best move right now is to be informed, prepared, and strategic. Speak to a mortgage expert to understand your options and see how you can make the most of today’s unusual market conditions.

Secure your rate today—before the next rate shift changes the playing field.