October 7, 2025 | Buying

September brought renewed activity across the Greater Toronto Area (GTA) housing market, as more buyers stepped off the sidelines to take advantage of easing borrowing costs. However, with ample choice still available, buyers continued to negotiate firmly—keeping downward pressure on average sale prices.

Market Momentum Builds

The Bank of Canada’s September interest rate cut offered a welcome dose of optimism for homebuyers. Lower borrowing costs are helping more households qualify for mortgage payments that align with their budgets, while also boosting the broader economy through housing-related spending.

Although activity remains below long-term historical levels, the overall tone of the market has shifted—confidence is gradually returning.

September by the Numbers

  • 5,592 homes sold through TRREB’s MLS® System — an 8.5% increase year-over-year
  • 19,260 new listings entered — up 4% from September 2024
  • On a seasonally adjusted basis:
    • Sales were up month-over-month compared to August
    • New listings declined slightly, suggesting mild tightening in some segments
  • The MLS® Home Price Index (HPI) Composite benchmark was down 5.5% year-over-year
  • The average selling price came in at $1,059,377 — a 4.7% decrease from last year
  • Compared to August, the HPI dipped 0.5%, while the average price remained virtually flat, edging up 0.2%

What It Means for Buyers

This remains a favourable environment for buyers who’ve been patiently waiting for the right moment. With more inventory on the market and slightly lower borrowing costs, there’s greater flexibility to find a home that fits both lifestyle and budget. Buyers with pre-approvals in place are well-positioned to act quickly when the right opportunity arises.

What It Means for Sellers

For sellers, strategy and presentation are everything. In a market where listings are plentiful, homes that are priced competitively and showcased effectively will stand out—and sell faster. While pricing pressure persists in some areas, motivated buyers are out there and ready to make strong offers on well-positioned properties.

Looking Ahead

As TRREB Chief Information Officer Jason Mercer notes, “While home sales have improved over the past year, they still remain below normal levels relative to the number of households in the GTA. Two more 25-basis-point rate cuts by the Bank of Canada would see monthly mortgage payments move more in line with homebuyers’ average incomes, further spurring home sales and related economic activity.”

Bottom Line:

The GTA market is showing signs of renewed momentum. Buyers are feeling more confident, and sellers who adapt strategically to current conditions are well-placed to benefit. Whether you’re planning to buy, sell, or simply explore your options, now is a great time to start the conversation.