September 5, 2025 | Buying

The Greater Toronto Area (GTA) housing market saw a lift in sales this August compared to last year, but the real story is the significant increase in available listings. Buyers are benefitting from greater choice across all market segments, while sellers are navigating a landscape where pricing strategy matters more than ever.

What’s Happening in the Market?

Home sales have inched up year-over-year, but with inventory growing even faster, buyers are enjoying more negotiating power. For sellers, this means homes need to be well-prepared and competitively priced to stand out. With inflation under control and interest rates easing, additional cuts by the Bank of Canada could further improve affordability — potentially offsetting economic challenges like tariffs and supporting more home sales.

Key Numbers from August 2025

  • 5,211 homes sold across the GTA — up 2.3% from August 2024.
  • 14,038 new listings hit the market — a 9.4% increase year-over-year.
  • Month-over-month, sales edged slightly lower than July, while listings continued to rise.
  • The average selling price was $1,022,143, down 5.2% compared to last year.
  • Prices and the MLS® HPI Composite held steady compared to July on a seasonally adjusted basis.

What This Means for Buyers

This is a buyer-friendly market. With more listings to choose from and prices holding lower than last year, there’s an opportunity to find value. Even with borrowing costs having eased, affordability challenges remain, but further rate cuts could help more households make the move.

What This Means for Sellers

More inventory means more competition. Homes that are priced correctly and marketed strategically are the ones attracting attention and offers. Presentation, staging, and timing are critical in ensuring your property stands out in a crowded market.

Looking Ahead

While long-term growth will rely on large-scale projects like affordable housing and infrastructure, in the short term, housing remains a key driver of economic recovery. As REALTORS®, we’re watching closely as affordability improves and more buyers prepare to re-enter the market this fall.

Bottom line: August brought more balance to the GTA housing market. Buyers benefit from choice, while sellers need a smart strategy to succeed. Whether you’re considering buying or selling, our team is here to guide you with the expertise and insight needed in today’s shifting market. Thinking of making a move this fall? Let’s connect and talk strategy.