Toronto market update | TorontoLivings

Jan 12

Toronto Real Estate Market 2025 Year-End Review & Outlook

By Mark Savel Advice For Buyers, Advice For Sellers, Toronto

If 2024 was about uncertainty, 2025 was about adjustment.

The defining force this year wasn’t disappearing demand — it was inventory overwhelming the market’s ability to absorb it. Toronto averaged 25,548 active listings throughout 2025, a level that consistently exceeded what buyer demand could comfortably clear. Supply peaked mid-year at 31,603 active listings in June, then remained elevated through most of the fall before finally compressing into December.

Sales activity followed a familiar seasonal arc, averaging 5,228 sales per month, but that demand was spread thin across a much larger pool of listings. On paper, the market looked active. On the ground, it felt selective.

Buyers had options. Time. Leverage. Sellers could still transact — but only when expectations were realistic from the outset. This wasn’t a crash. It wasn’t a rebound either. It was a prolonged re-pricing environment, where leverage steadily and decisively shifted toward buyers.

Sales & Demand: Present, But Highly Filtered

Sales volumes showed resilience through the middle of the year. Monthly sales climbed from 3,847 in January to a peak stretch above 6,100 sales between May and July, confirming that buyers were not sitting on the sidelines entirely.

But that demand was fragile.

By December, sales slipped back to 3,697, nearly identical to January levels, despite clearer pricing, more transparency, and softer expectations. That bookend tells the real story of 2025: demand existed, but urgency never fully returned.

Where buyers did act decisively, three patterns stood out:

• Homes priced directly in line with recent comparable sales
• Listings that were clearly superior to competing inventory
• Properties positioned as good value, not best-case scenarios

Homes that missed those marks didn’t just sell later — they often sold for less, after extended exposure and multiple price reductions.

Inventory & Supply: The Dominant Force of 2025

If there was a single variable that shaped behaviour this year, it was supply.

New listings averaged 15,469 per month, with spring inflows particularly heavy. April through June alone added nearly 60,000 new listings to the market. Even as sales improved seasonally, absorption never caught up.

The impact compounded over time. Active listings rose from 17,157 in January to over 30,000 by May, fundamentally changing buyer psychology. And even when new listings slowed sharply — falling to just 5,299 in December — buyers were still choosing from 17,005 active listings.

That’s not scarcity by any definition.

As a result, buyers compared more homes before committing, conditional offers became routine again, and sellers lost the ability to rely on urgency or fear of missing out. Inventory didn’t need to keep rising forever to reshape the market. It simply needed to stay elevated long enough for psychology to change — which it did.

Pricing & Value: Softening, With Clear Winners and Losers

The average Toronto sale price in 2025 landed around $1.065M, but that headline number hides meaningful divergence beneath the surface.

Prices peaked in late spring, then softened steadily through the second half of the year, tracking directly with elevated inventory and rising buyer selectivity. Average Days on Market climbed from 38 days in Q2 to 57 days by Q4, reinforcing how patience — not urgency — defined buyer behaviour by year-end.

Well-priced homes often sold within their first listing window. Overpriced listings typically required multiple reductions. Final sale prices increasingly drifted away from original list prices.

By Q4, buyers weren’t negotiating off asking prices — they were negotiating off perceived value, often pointing to better alternatives still sitting on the market.

2025 by Housing Segment: Four Markets, One Theme

Detached Homes

Detached homes were the most resilient segment in 2025, but not immune.

Sales volumes held up better here than in other segments, particularly in established neighbourhoods where land value, schools, and long-term scarcity continued to support demand. Even so, elevated supply capped pricing momentum. Many detached listings required sharper initial pricing to generate traction.

Buyers were qualified, deliberate, and far less emotional than in past cycles. Overpriced detached homes frequently sat through multiple listing periods, while realistically priced homes attracted steady — if unspectacular — interest.

Semi-Detached Homes

Semi-detached homes felt affordability pressure more directly.

As a traditional step-up option, this segment was highly sensitive to interest-rate psychology. Demand existed, but buyers had more choice than usual, and that softened competition.

Well-presented semis in strong neighbourhoods continued to sell, but rarely with the multiple-offer dynamics sellers had come to expect. Pricing accuracy mattered enormously, making this segment a clear barometer of buyer confidence.

Townhouses

Townhouses experienced one of the more noticeable shifts in 2025.

Inventory growth, particularly in newer and suburban-adjacent projects, increased competition and reduced urgency. Buyers weighed townhouses more carefully against condos and smaller detached options, prioritizing layout, fees, and long-term livability.

Well-priced freehold townhouses performed reasonably well. Those that lacked differentiation or sat awkwardly between price points often struggled.

Condos

Condos were the most challenged segment of 2025.

Elevated supply, especially among one-bedroom and investor-oriented units, weighed heavily on pricing and absorption. Buyers had ample choice and often adopted a wait-and-see posture, particularly in buildings with high listing concentration.

While unique, well-located, or larger units still sold, competition was fierce and pricing pressure persistent. By year-end, condos increasingly led the market’s re-pricing rather than following it.

What This Meant for Buyers

For buyers, 2025 delivered something Toronto rarely offers: choice without chaos.

Elevated inventory created real leverage, particularly on listings that had been on the market 30 days or longer. Disciplined buyers were often rewarded with price reductions, seller concessions, and time to conduct proper due diligence.

That said, decisiveness still mattered. Homes that were clearly priced right — especially in strong neighbourhoods or turnkey condition — continued to attract competition.

The opportunity wasn’t universal leverage. It was selective leverage.

What This Meant for Sellers

For sellers, 2025 was a year where strategy mattered more than timing.

Listings that launched aligned with market reality often sold efficiently, even in a high-inventory environment. Those that chased aspirational pricing frequently became stale and paid for it later.

The data reinforced a difficult but consistent truth: waiting for the market to “come back” was rarely rewarded.

Carrying costs, competition, and buyer fatigue often outweighed the benefit of holding out, particularly in the second half of the year. Sellers who succeeded treated pricing as a proactive decision, not a fallback plan.

Short-Term Outlook Heading Into 2026

As the market moves into 2026, inventory remains the variable to watch.

New listings have slowed seasonally, but active supply is still high enough to keep buyers cautious and selective. Interest-rate sentiment may improve, but affordability constraints haven’t disappeared.

The most likely near-term scenario is continued sorting: well-priced homes transact, misaligned ones adjust, and leverage remains situational rather than universal.

Thinking About Buying or Selling in 2026?

Markets like this reward strategy, not guesswork.

If you’re planning to buy or sell in 2026 and want clarity around pricing, timing, and leverage, we’re happy to help you think it through. Whether that means stress-testing a sale price, identifying real buying opportunities, or simply understanding how current conditions affect your plans, our role is to give you clear, grounded advice—before you make any big decisions. Get in touch with us by sending a message below!

Jan 12

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December 2025 Toronto Real Estate Market Update

By Mark Savel Monthly Market Updates

A Quiet Finish to a High-Inventory Year

Big Picture

December 2025 closed the year the way many of us expected: slower, softer, and more selective. This wasn’t a sudden shift—it was the natural compression of a market that spent most of the year carrying elevated inventory and cautious buyer psychology. Sales pulled back sharply from the fall, new listings tapered off as sellers stepped aside for the holidays, and prices softened further on both a month-over-month and year-over-year basis.

What matters most here is context. December didn’t change the market’s direction—it confirmed it. Buyers continued to hold leverage thanks to choice and patience, while sellers who remained active were increasingly motivated by timing, finances, or life changes rather than optimism. In other words, the market didn’t freeze—it clarified.

Sales & Demand: Seasonally Quiet, Selectively Active

Sales in December declined to 3,697 transactions, down 26% from November, which is entirely consistent with year-end seasonality. More telling, however, is that sales were up just over 10% year-over-year, suggesting buyers didn’t disappear—they simply became more deliberate.

Detached, semi-detached, and townhouse segments all experienced sharp month-over-month slowdowns, while condo sales also pulled back after a relatively active fall. This reinforced a theme that played out throughout 2025: buyers will move forward when pricing aligns with perceived value, but they’re unwilling to chase—or compromise, especially in the slow months of the year.

Inventory & Supply: Relief, Not Resolution

Active listings fell to 17,005, down more than 30% from November, largely because new listings collapsed to just 5,299—a normal December retreat. That said, inventory levels remained over 10% higher than December 2024, underscoring that the market is still structurally well supplied despite the seasonal pause.

This distinction matters. Negotiating pressure didn’t reset—it simply went dormant. Buyers heading into early 2026 will still be comparing options, price reductions, and listing histories from late 2025. Sellers hoping for a clean slate in January may find that buyers remember December listings very clearly.

Pricing & Value: A Soft Landing, Continued Sensitivity

The average Toronto home price slipped to $1,006,735, down 3.1% month-over-month and 5.7% year-over-year. Every major property type felt pressure, with detached and semi-detached homes posting notable annual declines, and condos continuing to wrestle with affordability ceilings and investor hesitation.

A key divergence worth noting: detached homes continued to see price sensitivity tied to affordability and carrying costs, while condos faced a different challenge—buyer hesitation driven by fees, investor pullback, and an abundance of comparable options. In short, detached pricing softened due to demand constraints, while condo pricing remained capped by supply and sentiment.

Equally telling: average days on market climbed to 65, the highest level of the year. Buyers weren’t rushing—and sellers were often forced to adjust expectations mid-listing. Gaps between initial list prices and achieved sales remained wide, particularly where sellers anchored to early-2022 or early-2023 benchmarks.

Housing Segment Performance: What the Numbers Showed in December 2025

Detached Homes

Detached home sales pulled back sharply in December, consistent with seasonal norms, but the more important trend was pricing behaviour. Detached prices continued to trend lower on a year-over-year basis, reinforcing that affordability—not demand—is the limiting factor. Buyers remained active, but only at price points that reflected today’s borrowing costs, not past peaks.

The rise in days on market was especially noticeable in this segment, signalling that detached sellers faced the greatest gap between expectations and buyer willingness. Homes that corrected early still sold; those that didn’t often linger. The year-end data suggests detached pricing remains sensitive heading into early 2026 unless rates or sentiment shift meaningfully.

Semi-Detached Homes

Semi-detached homes followed the same directional trend as detached properties, though with slightly better liquidity. Sales slowed month-over-month in December, but not disproportionately, reflecting steady underlying demand for this middle-ground housing type. Year-over-year performance was more stable than detached, reinforcing that buyers still see semis as a relative value play.

Pricing softened modestly rather than sharply. December showed that buyers had very little tolerance for even slight overpricing—homes that launched realistically moved, while those that didn’t quickly blended into available inventory.

Townhouses

Townhouse sales cooled alongside the broader market, but this segment continued to benefit from functional end-user demand. Price movement was relatively flat compared to detached homes, though performance varied significantly by product type. Freehold townhomes held value better, while stacked and condo townhomes behaved much more like the condo segment.

Days on market increased slightly, but not alarmingly. The key trend here is separation rather than decline: townhouses with clear value propositions remained competitive, while those caught between pricing tiers faced longer exposure and heavier negotiation.

Condos

Condos remained the most challenged segment heading into year-end. Sales slowed in December, and elevated inventory continued to weigh on pricing momentum. Year-over-year price softness persisted, reflecting investor pullback and increased competition among listings.

While entry-level and end-user-friendly units still attracted interest, buyers showed little urgency. Rising days on market and frequent price adjustments confirmed that leverage firmly rests with buyers. December reinforced that condos are likely the last segment to see pricing stabilization unless supply meaningfully contracts.

What This Means for Buyers

December reinforced that patience remains a valid strategy. While selection may thin temporarily, motivated sellers still exist—and many are willing to negotiate meaningfully on price, terms, or closing flexibility. Buyers who understand value, rather than simply chasing discounts, are best positioned as we move into early 2026.

For buyers looking to understand neighbourhood-level pricing and opportunity, exploring recent Toronto market breakdowns can help frame where value is emerging.

What This Means for Sellers

If you sold in December, you likely did so because you priced with intent. If you didn’t, the message is clear: 2026 will continue to reward preparation, pricing discipline, and strategic timing. Waiting only makes sense if expectations are flexible—and your timing truly allows it.

Sellers considering an early-2026 launch should pay close attention to how inventory rebuilt throughout 2025, as those patterns are likely to repeat.

Short-Term Outlook

As we head into the first quarter of 2026, expect inventory to rebuild quickly, buyer engagement to return cautiously, and pricing conversations to remain grounded. Interest-rate sentiment may improve marginally, but psychology—not policy—will continue to shape negotiations.

Thinking About Selling in 2026?

If a move is on your horizon this year, the groundwork matters more than ever. Pricing strategy, timing, and presentation—not hope—are what separate homes that sell cleanly from those that linger. If you’d like to talk through how this market impacts your buying or selling plans, send us a message below!

Dec 10

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November 2025 Toronto Real Estate Market Update

By Mark Savel Monthly Market Updates

According to the calendar, we’re officially in “hot chocolate and thicker jackets” season… and according to November’s numbers, the Toronto real estate market has also settled into full fall mode.

November wasn’t dramatic or chaotic. Instead, it felt like a market catching its breath—slower pace, fewer listings, and more thoughtful buyers. But tucked inside the overall cool-down was a standout story: freehold homes between $1M and $1.5M were buzzing with real activity. Let’s break down what actually happened.

What Happened in the Toronto Market This November?

Sales Slipped—But It’s Not the Plot Twist You Might Expect

Toronto recorded 5,010 sales, an 18.38% drop from October. On the surface, that might look like a steep fall… but November is historically a slower month as buyers shift into “holiday mode” and sellers decide to wait out the year.

The interesting part? Even with fewer deals happening, conversations with buyers stayed lively. This wasn’t a demand problem—it was a “let’s be picky” moment.

New Listings Dropped Harder Than Sales

Only 11,134 new listings hit the market in November—a sharp 30.7% drop. That’s the real story of the month. Sellers stepped back in a big way, which meant that buyers who were actively shopping suddenly had fewer homes to choose from.

When new listings fall faster than sales, the market tightens. And that’s exactly why prices held steady.

Even Active Listings Declined More Than Usual

Active inventory fell to 24,549—nearly 12% lower month-over-month.

Buyers who remained committed in late fall described the experience as “I’m ready… but there’s nothing to see.” Anyone who has been through a November search knows the feeling.

Prices Held Steady (All Things Considered)

Average Price: $1,039,458 (Down just 1.4%)

You might expect a bigger price swing with slower sales, but Toronto homes proved resilient. Prices barely budged and stayed right in line with where they’ve been for most of the year.

Think of it as the market saying: “Relax, nothing dramatic happening here.”

Days on Market Hit Their Longest Stretch This Year

The ‘Days on Market” rose to 56 days, the slowest pace we’ve seen in 2025.

This doesn’t mean homes aren’t selling—it means buyers are taking their time, comparing options, and running the numbers twice. But again… this was not the case everywhere.

The Breakout Segment: Freehold Homes Between $1M and $1.5M

Here’s where things get fun.

Detached & Semis in This Range Moved Faster Than the Market

Despite the overall slowdown, this pocket of the market stayed lively. In the 416:

Detached homes saw 600 sales
Semis hit 209 sales

Not record-breaking, but the energy was noticeably stronger. Freeholds that were move-in ready, offered rental potential, or were located near transit didn’t sit long.

Why? Because this price band continues to hit that Toronto sweet spot: attainable for move-up buyers, attractive to investors, and competitive enough to avoid the bidding-war chaos of earlier years.

Condos and Townhouses: Softer Demand, Stable Pricing

Condos Took a Breath After October’s Spike

Condo sales dipped to 880 (a 17.9% decline). No surprise here—condo buyers tend to be more rate-sensitive, and many are waiting for early 2026 announcements before locking in.

Yet, the average condo price actually inched up to $701,259. That’s the stability story again.

Townhouses Were a Mixed Bag

Townhouses landed at an average price of $870,793, a modest 2.2% dip.

Still, they continue to appeal to buyers who want the space of a freehold but not the price tag of one. The townhouse segment is very much alive—it’s just quieting down with the rest of the market.

Big Picture Trends Shaping Toronto’s Market Right Now

Mortgage Rates Are Finally Helping

After the Bank of Canada’s gradual cuts, many 5-year fixed rates now sit in the mid-4% to low-5% range. Buyers aren’t sprinting back, but confidence is noticeably higher than in 2023–2024.

If you talk to anyone who started a pre-approval a year ago and renewed it recently, they’ll tell you the same thing: “This feels manageable again.”

Consumers Are More Hopeful—But Still Cautious

Renewals at higher rates are still holding some would-be sellers back, especially those locked into ultra-low pandemic mortgages.

But newcomers, families, and investors are fueling the activity we do see—especially where rental income or multi-unit potential exists.

Policy Shifts Are Playing a Quiet but Important Role

With Bill 60 improving LTB timelines and clarifying the N12 process, landlords and investors are planning ahead with more certainty.

Meanwhile, Toronto’s ongoing gentle-density permissions are quietly changing how buyers view freehold lots—especially those with laneway or basement suite potential.

What Buyers Should Take Away From November 2025

Where the Opportunities Are

Freeholds under $1.5M: competitive, but not overwhelming.
Condos: stable prices + motivated sellers = room to negotiate.

What’s Likely Coming Next

Expect December to stay quiet—it always does. The real moment to watch is early 2026, when the Bank of Canada sets the tone for the year.

If confidence rises, expect buyers to move from browsing to buying.

Thinking of Buying or Selling?

Whether you’re upsizing, downsizing, or investing, November’s data tells us the same thing: this is still a market with opportunities—just not the loud, dramatic kind.

When you’re ready to talk strategy, we’ve got your back!

Nov 06

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October 2025 Toronto Real Estate Market Update

By Mark Savel Monthly Market Updates

After a quieter summer and a cautious start to the fall market, October delivered the clearest sign yet that Toronto’s real estate landscape is stabilizing. Sales activity continued to improve, inventory eased from September’s surge, and prices held firm month-over-month. While the market is not roaring forward, October showed a meaningful shift in sentiment as buyers re-engaged and competition tightened slightly across several segments.

Below is a full breakdown of how the market performed and what it means for buyers and sellers heading into the final stretch of the year.

October at a Glance

Sales: Up 9.76% month-over-month
New Listings: Down 16.57% month-over-month
Active Listings: Down 5.40% month-over-month
Average GTA Price: Down 0.47% month-over-month
Average Days on Market: 50 days (down from 51 in September)

GTA Market Overview

October delivered a second consecutive month of sales growth, rising nearly 10% from September. Buyers who had previously stepped to the sidelines over the summer began returning, encouraged by improved affordability expectations, increased negotiation power, and a sense that prices may have reached a temporary floor after months of softening.

Inventory also pulled back in October. New listings dropped more than 16% month-over-month, and active listings declined just over 5%. While supply remains higher than last year, the month-over-month easing helped bring the market closer to balance. With fewer new listings coming online, sellers benefited from slightly less competition than they faced in September.

Prices remained stable, dipping less than half a percent. Considering the broader downward pressure over the past year, October’s minimal price movement suggests values may be flattening as the market finds an equilibrium between what sellers are willing to accept and what buyers are prepared to pay.

Key Takeaway: October showed improving buyer engagement and tightening inventory – two key ingredients for price stabilization.

Key Market Drivers in October

Improved Buyer Confidence
The fall market saw stronger engagement as buyers adjusted to borrowing costs and gained clarity around pricing. This confidence translated into increased sales activity across both freehold and condo segments.

Inventory Eased After a September Surge
September’s spike in listings created temporary pressure on prices. With fewer new listings in October, buyers had less choice, helping restore some balance.

Price Stability Encouraged Move-Ups and First-Timers
Stable pricing helped both move-up buyers and first-time purchasers make more confident decisions, especially in the condo and semi-detached segments.

GTA Market Performance: Month-Over-Month

Sales increased by 9.76% (+546 sales)
New listings declined by 16.57% (-3,191 listings)
Active listings dropped by 5.40% (-1,586 listings)
Average price decreased slightly by 0.47% (-$5,005)
Days on Market improved from 51 to 50 days

Key Takeaway: The combination of rising sales and falling listings is a positive directional shift for market balance.

GTA Market Performance: Year-Over-Year

Sales down 7.81% from October 2024
New listings up 4.83% from last year
Active listings up 13.59% from last year
Average price down 7.12% year-over-year (-$80,843)
Days on Market up 16.28% from last year (+7 days)

Key Takeaway: While the month-to-month narrative has improved, year-over-year comparisons continue to show a softer market with more choice and lower prices than last fall.

416 Market Breakdown by Property Type

Sales Activity (Month-Over-Month)

Detached: Up 10.67% (+72 sales)
Semi-Detached: Up 22.90% (+49 sales)
Townhouse: Up 13.64% (+30 sales)
Condo: Up 14.04% (+132 sales)

Sales growth was seen across all housing types, marking one of the broadest improvements this year. Semi-detached homes led the month, followed closely by the condo sector, which regained momentum after a slower summer.

Key Takeaway: Buyer interest strengthened across all segments, showing renewed confidence in the market.

Pricing Trends (Month-Over-Month)

Detached: Down 3.97% (-$66,966)
Semi-Detached: Up 3.18% (+$37,582)
Townhouse: Down 4.19% (-$38,919)
Condo: Up 2.66% (+$18,126)

Freehold properties saw mixed performance. Detached and townhouse values experienced modest declines, while semis posted the strongest price gains of the month. Condos also saw average prices rise, supported by an uptick in demand and more motivated fall buyers.

Key Takeaway: Semi-detached homes stood out as the strongest performer, while condos continue to offer value-driven opportunities for buyers.

What This Means for Buyers

With inventory easing and sales strengthening, buyers considering a purchase in the next three to six months may want to take advantage of current conditions. Prices have shown signs of stabilizing, and as competition picks up, the negotiation leverage seen through the summer could begin to narrow.

Key Takeaway: Buyers still hold advantages, but conditions are shifting. Acting before inventory tightens further could be beneficial.

What This Means for Sellers

October offered sellers a more encouraging landscape than earlier in the fall. With fewer new listings entering the market, properly priced homes saw more consistent showings and engagement. Attractive, well-prepared properties continue to see the strongest results.

Key Takeaway: Sellers who position their home strategically and price with the current market will find more motivated buyers than in recent months.

Our Take

October marked an important turning point for Toronto real estate. While we’re not seeing dramatic price growth or frenzied bidding wars, the combination of stronger sales and softer listing numbers suggests the market is working toward balance. Confidence has improved, and both freehold and condo buyers are moving more decisively than they did over the summer.

Heading into the final months of the year, the market appears more stable and predictable than it has been for most of 2025. For both buyers and sellers, clarity is returning, and informed strategies are key. As always, reach out any time if you’d like to learn more!

Oct 16

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September 2025 Toronto Real Estate Market Update

By Mark Savel Monthly Market Updates

September brought a noticeable pulse back to the Greater Toronto Area housing market. TRREB reported 5,592 homes sold across the region — an 8.5% increase compared to the same time last year. This rebound comes alongside a 4% increase in new listings, with 19,260 properties entering the market.

While activity picked up, prices continued their modest retreat. The MLS Home Price Index Composite Benchmark dipped 5.5% year-over-year, while the average selling price landed at $1,059,377, down 4.7% annually. On a seasonally adjusted basis, the average price held relatively flat month-over-month (up 0.2%), while the benchmark dipped slightly (-0.5%).

With more homes for sale and increased buyer negotiation power, the market remained competitive — but not chaotic. This remains a market driven by opportunity-seeking buyers and realistic sellers.

Interest Rates & Economic Backdrop

After holding steady for months, the Bank of Canada announced a much-anticipated rate cut in September — lowering its key policy rate to 2.50%.

The move came in response to softening inflation, weaker job creation, and ongoing global trade challenges. It also provided a notable psychological and financial boost for homebuyers, many of whom had been sidelined by borrowing constraints.

Lower rates mean more manageable monthly payments — especially for variable-rate borrowers or those renewing mortgages. According to Global News, some households are now able to qualify for homes that had previously been out of reach.

Expectations are building for two more 25-bps cuts before spring 2026. If realized, this could significantly improve affordability metrics and buyer confidence.

Deep Dive: Sales, Listings & Price Trends

The September landscape was defined by:

More sales: 5,592 transactions (up 8.5% YoY)
More choice: 19,260 new listings (up 4% YoY)
Lower prices: Benchmark HPI down 5.5%, average price down 4.7%
Subtle shift: Sales up vs August, but listings down → signs of slight tightening in certain pockets

This mild tightening suggests some segments — especially entry-level freeholds and move-in-ready condos — may see more bidding activity heading into the fall.

Condo Market & Our Brokerage Lens

Here’s where things got interesting for us at Toronto Livings.

While broader TRREB data showed continued softness in the condo market, our listings told a different story. Every condo we had on the market in September sold faster than expected — often within a week, and in some cases with multiple offers.

Buyers seem to be responding to three things:

Relative affordability: Condos offer a lower price point for end-users and investors alike.
Inventory balance: With listings plateauing, urgency is returning.
Renewed investor appetite: Lower rates + strong rental demand = better ROI math.

This isn’t a market-wide shift yet — but it’s a trend we’re watching closely, especially downtown and in midtown nodes like Yonge & Eglinton and Liberty Village.

What Buyers & Sellers Should Watch

For buyers:

Affordability is trending in your favour. Lower mortgage rates = more purchasing power.
There’s still room to negotiate. Prices are down YoY, and sellers are motivated.

For sellers:

Well-prepped, well-priced homes are moving. Especially in the condo and mid-tier freehold space.
Professional staging, marketing, and pricing strategy matter more than ever.

For everyone:

Inventory may tighten further if new listings continue to slow and sales ramp up.
October and November often bring strategic buying opportunities before the winter slowdown.

Outlook & Forecast

TRREB expects 76,000 total sales by year-end, with modest price growth returning in early 2026 — assuming more rate cuts are on the table.

But there are caveats:

Construction activity is falling — new housing starts have slowed considerably.
Policy coordination is lacking — TRREB is calling for better alignment between all levels of government and industry players.
Supply chain and labour constraints continue to weigh on delivery timelines.

Still, with borrowing costs easing and buyer sentiment rising, the stage may be set for a more active close to the year.

Thinking of making a move this fall? Let’s talk — the market may offer more opportunities than you think.

Jul 07

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June 2025 Toronto Real Estate Market Update

By Mark Savel Monthly Market Updates

Real estate in Toronto took another small step toward affordability in June. With borrowing costs and average selling prices still trailing last year’s levels, more buyers are beginning to test the waters—even if many are still playing the waiting game.

The housing market showed further signs of recovery in June, as buyers benefited from a growing number of listings. With more inventory to choose from, many were able to negotiate below asking prices—an early sign that market leverage is beginning to tip back toward buyers.

Sales and Listings: Market Gains Traction (Sort Of)

Realtors reported 6,243 sales through the MLS System in June—a modest 2.4% dip compared to June 2024. However, new listings jumped 7.7% year-over-year, reaching 19,839 properties.

On a seasonally adjusted basis, sales were up compared to May 2025, while new listings were down. That combination—more buying activity and slightly less inventory—continues the tightening trend we saw take shape this spring.

Inventory vs. Demand: Are We Headed for Balance?

Month-over-month momentum looks promising, but economic jitters still weigh on decision-making. Many households are hesitant to dive in until they feel more secure about their jobs, rates, and the overall direction of the economy. Still, as inventory tapers and options dwindle, that hesitation could turn into competition sooner than later.

What’s Happening with Prices?

Condos Reach New High for 2025

While overall prices in the GTA trended downward, the condo segment quietly notched a win in June. The average condo price rose to $731,232—the highest it’s been all year. That’s up from $709,905 in May and significantly higher than where the year started at $691,039.

This steady upward trend—especially with June breaking the ceiling—could be an early signal of shifting demand. With lower entry points than detached homes and improved affordability, condos might be the segment to watch as momentum builds through summer.

Detached Prices Cool Off After Strong Start

Detached homes, meanwhile, saw a different trajectory in the first half of 2025. After peaking in February at $1,782,262, average prices for detached properties have gradually softened, settling at $1,641,868 in June. While still higher than January’s average of $1,579,386, the trend suggests a gradual cooldown from earlier highs.

Buyers in the detached segment may find more room to negotiate as prices ease off their earlier highs, especially with higher-carrying costs still weighing on the top end of the market.

Semi-Detached Homes Show Seasonal Resilience

Semi-detached properties had a relatively stable run through the first half of 2025. While they haven’t reached a new peak since March’s high of $1,337,498, June’s average price of $1,278,434 still sits comfortably above where the year began.

The numbers suggest a segment that’s holding firm despite broader market softening—offering a middle ground between affordability and space that continues to resonate with move-up buyers.

Townhomes Ride the Seasonal Wave

Townhomes had a mixed performance in the first half of 2025, with prices fluctuating month to month. After peaking in February at $1,028,339, the average townhome price slid back to $957,605 in June. While that’s still above January’s average of $941,893, the segment appears more sensitive to broader affordability pressures.

For buyers, this could present a timely opportunity—especially for those seeking more space than a condo offers but without stretching to a detached price point.

Overall Price Summary

June’s average selling price landed at $1,101,691, representing a 5.4% drop year-over-year. The MLS Home Price Index Composite Benchmark also dipped 5.5% compared to June 2024. Month-over-month? Both the average price and HPI edged slightly lower from May.

This downward pressure on pricing isn’t new—it’s been with us for several months—but it continues to create an entry point for buyers who were previously priced out.

Price Chart – YoY and MoM Breakdown

Metric	June 2024	May 2025	June 2025	% Change YoY	% Change MoM
Average Price	$1,164,714	$1,110,905	$1,101,691	-5.4%	-0.8%

What’s Fueling (or Delaying) the Recovery?

The market isn’t just reacting to supply and demand—it’s heavily influenced by macroeconomic factors. According to TRREB CIO Jason Mercer, a firm U.S. trade deal and two more expected rate cuts could help “make monthly mortgage payments more comfortable for average GTA households.” That added affordability, paired with improved consumer confidence, could push the recovery into higher gear.

But as of now, buyers are taking their time. Inflation progress has been choppy, and many are still skeptical that rates will come down fast enough to offset homeownership risks.

What Buyers and Sellers Should Know Right Now

For Buyers:

More listings mean more choice—and leverage.
Sellers are increasingly open to negotiation.
Lower borrowing costs = better affordability, even if only modestly improved.

For Sellers:

Price competitively to attract attention.
The tightening trend could benefit well-prepared listings.
With some buyers still on the sidelines, it’s not a frenzy—but serious shoppers are out there.

Final Thoughts: Recovery in Progress, but Far from Over

June continued the pattern we’ve seen throughout spring—a cautious, buyer-empowered market where affordability is slowly improving, but uncertainty still clouds the outlook. The next few months will be crucial. If confidence improves and rates continue to ease, Toronto’s real estate market could be poised for a steadier rebound – but who knows!

Curious what this means for your next move? Reach out by dropping us a message below—we’ll help you navigate the numbers and the nuance.