by Mo Monsef 
In August 2025, Toronto and the GTA became a buyer’s market. Sales rose slightly, but average prices fell in the GTA at $1,022,143 and in Toronto city $992,085. Inventory is high with 27,495 active listings, giving buyers more options and negotiation power. Detached homes and condos saw the biggest price drops. Sellers now need realistic pricing and well-presented homes to attract offers.
Key Market Highlights
| Metric | Value | Year-over-Year Change | Month-over-Month Change |
|---|---|---|---|
| Total Sales (GTA) | 5,211 | +2.3 % | −14.6 % vs July |
| Average Price (All Property Types) | $1,022,143 | −5.2 % | −2.8 % vs July |
| City of Toronto Average Price | $992,085 | −3.6 % | — |
| New Listings | 14,038 | +9.4 % | — |
| Active Listings | 27,495 | +22.4 % | −9 % |
| Days on Market | ~49 days | Up from ~44 days last year | — |
| Sales-to-New-Listings Ratio (SNLR) | ~37 % | Indicates strong buyer’s market | — |
| Months of Inventory (MOI) | ~5.3 months | Up YoY | — |
Average Prices by Property Type
- Detached Homes: ~$1,312,240 (down 7–8% YoY)
- Semi-Detached Homes: ~$980,102 (down 4%)
- Townhouses: ~$946,395 (down ~4.5%)
- Condo Apartments: ~$642,195 (down 5%)
Detached homes and condos experienced the steepest declines, reflecting reduced affordability and oversupply.
Regional Breakdown
- City of Toronto (416):
Sales activity held stronger in central areas, especially for detached and semi-detached homes. Prices fell by about 3–4%, but demand is steadier compared to suburbs. - 905 Suburbs (Peel, York, Durham, Halton):
Detached homes saw larger price drops. Inventory growth continues to put pressure on sellers, while buyers have more room to negotiate. - Condo Market:
Condos faced increased supply and slower absorption, especially in suburban markets. Prices are down ~5%, and units are taking longer to sell.
Why Prices Are Falling
- Rising Supply – More listings and higher inventory levels give buyers plenty of choice.
- Reduced Competition – Bidding wars are rare, leading to softer prices.
- Affordability Challenges – Mortgage rates and income-to-price gaps continue to limit buying power.
- Condo Oversupply – New completions and high resale listings increase downward pressure.
- Longer Selling Times – Average time on market rose to ~49 days, showing slower buyer decision-making.
Buyer & Seller Insights
For Buyers 🏡
- More selection and bargaining power.
- Detached and condo prices offer opportunities for those waiting on the sidelines.
- First-time buyers may find better entry points in townhouses and smaller condos.
For Sellers 🏠
- Accurate pricing is critical. Overpriced listings are sitting longer.
- Homes in prime locations or renovated properties are still in demand.
- Detached home sellers should adjust expectations as buyers are more price-sensitive.
Market Outlook & Trends to Watch
- Interest Rates: Any Bank of Canada rate cuts could boost affordability.
- Inventory Growth: More listings could keep downward pressure on prices.
- Regional Differences: Downtown Toronto remains steadier than outer GTA suburbs.
- Condo Market: Oversupply will likely continue to weigh on prices into fall 2025.
