Toronto’s housing market this summer has a new buzzword flying around: lowballing. Buyers are making offers far below asking price, sometimes hundreds of thousands less, while sellers are navigating how (or if) to respond. But this isn’t just about cheap offers—it’s a reflection of a market shifting toward buyer leverage, rising listings, and cautious sentiment amid economic and political uncertainty.
What’s Driving the Lowball Trend?
The story starts with an oversupply of homes for sale. This summer, listings in Toronto have reached historic highs, with active listings sitting near 31,000—levels not seen since early 2000s. More sellers are putting their homes on the market, creating more choices for buyers but also fueling negotiation power that wasn’t as strong in the red-hot markets of recent years.
Alongside this, buyers remain cautious. Many are waiting for the “right” deal in uncertain times, influenced by fluctuating mortgage rates, trade tensions, and concerns about economic stability. The result? Buyers adopt a “deal-or-no-deal” mindset, submitting lowball offers to test the waters, gauge seller motivation, or just see if they can score a bargain. According to industry insiders, anywhere from 87% of Toronto neighbourhoods were experiencing under-asking offers as of early summer, especially in condo and townhome segments where price flexibility is higher.
What Sellers Are Facing
For sellers, lowball offers can feel frustrating and even insulting. Yet, experts advise not to panic or dismiss these offers outright. Instead, lowballs can be strategic negotiation openers or signals about market expectations. Sellers who resist negotiating in this changing market risk having their listings sit longer or receiving fewer competitive bids.
Experienced realtors recommend counteroffering rather than rejecting outright, as many deals are worked out over several rounds of negotiation. Pricing strategy also matters: pricing a home realistically upfront can reduce lowball attempts, while leaving some room for negotiation is common practice. Sellers are learning that the market isn’t what it was two or three years ago—flexibility and patience are critical.
Which Neighbourhoods and Property Types See More Lowballing?
Not all parts of the GTA or home types are equally affected. Detached homes in highly desirable suburbs like Etobicoke, Leaside, or High Park still see relatively strong demand and fewer lowball offers. By contrast, condos and semi-detached townhomes—especially in the downtown core and adjacent areas—face deeper price reductions and more aggressive buyer offers, reflecting longer market times and more inventory.
What This Means for Buyers and Sellers
Buyers have more negotiating power than in recent seller-favorable years, but should remain financially prepared and realistic. Lowball offers might not always succeed but sending one can sometimes open a constructive dialogue or reveal seller motivation. A well-timed, reasonable offer combined with strong financing could lead to a deal.
Sellers should expect a different market than the frenzy years past. Realistic pricing, quality listing presentation, and willingness to engage in negotiation matter more than ever. Ignoring or outright rejecting lowball offers without counteroffers risks losing potential buyers in a more cautious landscape.
Looking Ahead: Is This Market Shift Permanent?
While lowballing is a symptom of the current market conditions, analysts expect some stabilization later in 2025 as the economy settles and mortgage rates stabilize. Sellers who adapt now may find success, and buyers who understand the market dynamics can find opportunities.
In summary, summer 2025 is shaping up as a true buyer’s market where lowballing is a common negotiation tactic. This shift from years of seller dominance means both buyers and sellers need to be more strategic, flexible, and informed to navigate the changing Toronto real estate landscape.
