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GTA Real Estate Market Report – July 2025

Posted on August 17, 2025 by Sami Chowdhury

GTA Real Estate Market Report – July 2025

Affordability Improves, Sales Surge, but Prices Remain Soft

By: Sami Chowdhury
Published: August 2025

Executive Summary

In July 2025, the Greater Toronto Area (GTA) real estate market witnessed a notable uptick in activity, marking the strongest July sales performance since 2021. While sales volumes increased by 10.9% year-over-year, the average selling price saw a 5.5% decline, signaling improved affordability for many buyers. These dynamics indicate a market in modest recovery mode, driven by easing borrowing costs, softer prices, and sustained listing activity.

Key Market Highlights (TRREB - July 2025)

Metric	July 2025	Change (YoY)
Total Home Sales	6,100	↑ 10.9%
New Listings	17,613	↑ 5.7%
Average Selling Price	$1,051,719	↓ 5.5%
MLS® HPI Composite Benchmark	↓ 5.4%
TRREB Composite Days on Market (PDOM)	36 days	↑ from 30 days (2024)
Bank of Canada Overnight Rate	5.0%	(unchanged since June)

Source: TRREB Market Watch July 2025

Market Analysis

Sales Rebound with Price Relief

Sales increased to 6,100 transactions, an encouraging 10.9% rise from July 2024. This is the best July performance in four years, supported by declining prices and moderate interest rates. The average selling price fell to $1,051,719, down 5.5% year-over-year. These conditions are attracting buyers who were previously priced out.

TRREB President Elechia Barry-Sproule noted:

“Improved affordability, brought about by lower home prices and borrowing costs, is starting to translate into increased home sales... a growing number of households are finding affordable options for homeownership.”

By Property Type – Sales and Prices

Home Type	416 Avg Price	905 Avg Price	TRREB Avg Price	YoY Price Change
Detached	$1,361,660	$1,294,424	$1,242,388	↓ 6.8%
Semi-Detached	$1,041,359	$894,094	$920,197	↓ 8.1%
Townhouse	$849,380	$829,332	$684,257	↓ 10.3%
Condo Apartment	$651,483	$590,004	$684,257	↓ 5.4%

Ref: TRREB Full Report, July 2025

Regional Breakdown: Toronto vs. Suburbs

City of Toronto (416 area)

Sales: Up significantly, particularly for condos and townhomes.
Prices: Held up better in the core, especially in condo markets, compared to suburban regions.
Trend: Urban affordability drawing younger buyers back into the city.

905 Region (Suburbs)

Sales: Volume growth strong, particularly in Peel, Durham, and York.
Prices: Dropped more sharply in detached and semi-detached segments.
Trend: Larger homes at discounted prices attracting families and investors.

Condo Market Snapshot

Metric	Value
Condo Apartment Sales	2,795 units
Avg. Selling Price	$684,257
Avg. DOM (Listing)	33 days
YoY Price Change	↓ 5.4%

Despite price softness, condos remain a strong entry point for first-time buyers. Renters transitioning to ownership continue to drive activity in this segment.

Rental Market Perspective

While detailed rental data wasn't directly provided in TRREB's July 2025 Market Watch, external reports indicate:

Average GTA one-bedroom rents: ~$2,400/month
YoY increase: Approximately 6–8%, depending on the area
Vacancy rates: Remain below 2% in key areas like Toronto, Mississauga, and Vaughan

Ref: Urbanation Q2 Rental Report

Economic Backdrop

Key Economic Indicators – July 2025

Bank of Canada Rate: 2.75%
Ontario’s Unemployment (June 2025): 7.8% (Unemployment rate by province and territory, June 2025)
Inflation (CPI YoY): 1.9% (Consumer price index)
GDP Growth (Quarterly Annualized): 2.2% (Canadian GDP Update)

Despite global uncertainty, particularly with U.S. trade, Canada’s economic fundamentals remain stable, and further rate cuts are expected before the end of 2025.

Policy Watch: Foreign Buyers

TRREB clarified misconceptions about the Foreign Buyer Ban:

“Despite widespread belief that the federal foreign buyer ban prohibits all foreign nationals from purchasing... exemptions exist.”
– TRREB CEO John DiMichele

Exemptions Include:

Multi-unit residential buildings (4+ units)
Vacant land for development
Recreational or rural properties
International students & temporary workers (under certain criteria)

This may explain continued investor activity in specific property types.

PropTx Insights – Market Pulse

According to the PropTx Market Stats Quick Overview:

Days on Market (DOM): ↑ to 30–36 days, signaling longer selling cycles
Active Listings: ↑ sharply, with 30,215 properties on the market
New Listings: Up 5.7% YoY – reflective of seller confidence returning
List-to-Sale Ratio: Remains tight, especially in the <$1M category

Ref: PropTx Member PDF - Days on Market & Stats Overview

HPI Benchmark Index – By Region (July 2025)

Region	Benchmark Price	YoY Change
Toronto	$1,041,800	↓ 3.95%
Mississauga	$1,104,300	↓ 4.50%
Vaughan	$1,154,319	↓ 4.90%
Durham Region	$928,600	↓ 2.12%
Peel Region	$1,061,000	↓ 4.78%
York Region	$1,294,424	↓ 6.0%

Ref: TRREB MLS® HPI Index, Market Watch July 2025

July 2025: Market Sentiment Analysis

Positive Indicators

✅ Sales rebound after 18 months of slowdown
✅ Borrowers find breathing room with slightly improved rates
✅ Active listings offer choices for buyers
✅ Condo market resilient
✅ Investors returning to the multi-unit and townhouse segments

Caution Flags

⚠️ Prices still in decline, raising concerns about further correction
⚠️ DOM increasing—buyers still cautious
⚠️ Foreign buyer exemptions may raise political scrutiny
⚠️ Trade tensions with the U.S. continue to pressure the economy

What’s Next for Buyers and Sellers?

For Buyers:

Consider entering the market now while prices remain soft
Lock in rates if rate cuts are on the horizon
Focus on townhouses and condos for best value

For Sellers:

Price competitively—overpricing could lead to stale listings
Staging and marketing are more important than ever
Expect longer time on market unless priced below average

Expert Insights: What Should You Do?

“We’re transitioning from a buyer’s market to a more balanced one... If the BoC cuts rates later in 2025, demand will surge again. Now may be the sweet spot.”
– [Sami Chowdhury, RE/MAX Realtron Realty Inc.]

Conclusion: GTA Market Slowly Stabilizing

The July 2025 data presents a cautiously optimistic outlook. Lower prices and improved affordability are pulling buyers off the sidelines, especially in condos and townhouses. However, price softness persists, and listings are staying longer on market, underscoring the need for strategic pricing and patience.

The GTA housing market remains dynamic—those who are informed and prepared will benefit the most in this changing environment.

Citations and References

TRREB July 2025 Market Watch Full Report: TRREB.ca PDF
TRREB News Release – July 2025: TRREB News
Urbanation Rental Report Q2 2025: urbanation.ca
Bank of Canada Policy Rate: BankofCanada.ca
Statistics Canada – CPI & Employment: statcan.gc.ca
TRREB HPI Index & Municipal Breakdown – July 2025 Full Report PDF

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