Toronto Home Sales Surge to Nine-Month High in July

Photo: Reuters

In July 2025, the housing market in the Greater Toronto Area (GTA) showed a major comeback. Sales jumped by 13% compared to June, reaching around 5,744 home sales. This was the biggest monthly increase in nine months and the strongest July result since 2021, as reported by the Toronto Regional Real Estate Board (TRREB).

However, while more homes were being sold, prices continued to fall slightly. The Benchmark Home Price Index dropped by 0.2%, bringing the average price down to C$979,000. This continued a slow decline seen in previous months.

1. What Helped Sales Rise
There are two big reasons why more people started buying homes again:

Lower Prices and Better Loan Rates: Home prices have fallen over the past year. At the same time, mortgage interest rates are more affordable now, helping more people qualify for home loans.

More Homes for Sale: The number of homes listed for sale went up by 5.7% compared to July last year. With more choices available, buyers had better chances to find what they wanted and negotiate better deals.

TRREB President Elechia Barry-Sproule said the sales boost shows more families are now able to buy homes, but warned that continued improvement depends on even lower borrowing costs.

2. Price Changes Over the Year

• Home prices are still going down, slowly but steadily.
• In the past year, average home prices dropped by 5.4%.
• The price index has decreased in eight of the last nine months, which is helping attract buyers who were earlier priced out.
• But this trend also makes some sellers nervous about listing their homes.

3. Signs of Recovery Started in June

• In June 2025, the housing market already showed signs of bouncing back:
• Sales were up 8.1% compared to May, with about 5,068 homes sold, the highest number since January.
• The average price in June was C$978,200, a drop of 0.9% from May and 5.5% lower than the same time last year.
• Listings increased 7.7% year-over-year, meaning buyers had more properties to pick from.

4. Predictions for the Whole Year
TRREB believes that:

Home sales in 2025 could rise by 12.4%, reaching about 76,000 sales for the year.

The average price of homes could go up slightly, by around 2.6%, but this depends on whether interest rates remain steady or fall further.

5. Why Buyers Are Returning
a. Lower Loan Interest
The Bank of Canada has kept its main interest rate at 2.75%, and there are signs it may lower it even more. Lower interest means smaller monthly payments for home loans, which helps families buy.

b. Many Homes Available
There are now more than 30,000 homes for sale in the GTA.

This is a 26% increase from last year.

Especially in the condo market, buyers are getting better deals and less competition.

6. Supply vs Demand
The sales-to-new-listings ratio is about 32%. That means more homes are being listed than sold, a clear sign the market currently favors buyers.

With both June and July showing more sales and falling prices, experts say this might be a limited-time opportunity for buyers to get in before prices go back up.

7. Differences Across the Region
In the City of Toronto, sales were up by 3.5% from last year, mainly helped by condos and lower-cost homes.

In nearby suburbs like Peel and Durham, year-over-year sales were still down, but they started to improve month-over-month.

8. Price Changes by Home Type

• Home Type    Price Trend
• Detached Homes    Mostly stable or slightly lower
• Townhouses    Modest price decreases
• Condos    Larger price drops; many listings available
• Condos had the biggest drop in value. In some areas of central Toronto, condo prices fell by 5–6% compared to last year.

9. What Hurt the Market Before

• Earlier in 2025, the market slowed down because of:
• High mortgage rates in late 2024, which made home loans more expensive.
• Trade problems, especially between Canada and the U.S., made people nervous about their jobs and money.
• Many people chose to wait and watch instead of buying.

10. What Could Still Go Wrong

• Even though the market is improving, there are risks:
• Trade disputes and economic worries could scare buyers again.
• If the Bank of Canada doesn’t lower rates further, fewer people may qualify for loans.
• Buyers and sellers are still uncertain—some are waiting to see if prices will go down more.

11. Tips for Buyers Right Now

• This could be a good time for people who were waiting to buy:
• There are more homes to choose from
• Prices are lower
• Loan costs are falling

Experts say this window might not last long. As more people come back to the market, competition could heat up again in 2026, and prices may rise.

Topic    Key Point

• July sales rise    13% monthly increase—the biggest in 9 months
• Home price trend    Prices down 0.2% this month, 5.4% lower than last year
• Listings and inventory    More homes available, up 5.7% from last year
• Buyer’s market signal    32% sales-to-listings ratio favors buyers
• Toronto vs suburbs    Toronto recovering faster; suburbs still slower
• Why rebound is happening    Cheaper loans, more homes for sale, and better affordability
• Ongoing risks    Trade concerns, interest rate uncertainty, cautious buyers
• Advice for buyers    Now may be the best time to buy before competition rises

The Toronto housing market is making a steady comeback. More people are buying homes thanks to lower prices, better mortgage rates, and more choices. For now, it's a good time for buyers who’ve been waiting for the right moment.

But this recovery is still fragile. If interest rates stop falling or the economy gets shaky, things could slow again.