GTA Market Watch – September 2025 | Toronto Real Estate Sales Up 7.8%

GTA Market Watch Update – September 2025: Confidence Creeps Back as Sales Climb 7.8%

The GTA market watch showed a noticeable lift in activity this September, signaling renewed confidence among buyers after a year of cautious moves and fluctuating expectations.

According to the Toronto Regional Real Estate Board (TRREB), 5,592 homes sold through the MLS® System in September 2025 — up 7.8% year-over-year from the 5,185 transactions recorded in September 2024.

This rise in sales marks one of the more optimistic shifts of the year. With borrowing costs stabilizing and more predictable monthly mortgage payments, buyers who had been sitting on the sidelines are starting to make their move.

Interest Rates and Economic Context

The Bank of Canada held its overnight rate at 2.8% in August, while the prime rate remained steady at 5.0%. Mortgage rates for a five-year term averaged 6.09% in August.

While affordability remains tight, this rate stability has restored a sense of predictability to the market — something buyers and sellers have been waiting for. Toronto’s employment growth of 1.3% and a modest 1.7% inflation rate also support this cautiously optimistic environment.

Prices Stabilize Across Home Types

According to the most recent GTA Market Watch, the average selling price in September came in at $1,059,377, representing a 4.7% decrease from the same time last year. However, on a month-over-month basis, prices were largely stable — suggesting that the market may be finding its footing.

Detached homes averaged $1.31 million, semis at $1.04 million, townhouses at $892,000, and condos at $683,000.
The condo segment, in particular, remains the most accessible entry point for first-time buyers — with sales up 7.4% and only a 4.3% drop in average price compared to 2024.

Interestingly, GTA Market Watch regional data reveals that suburban markets such as Durham and Peel are seeing stronger momentum compared to the downtown core. Many buyers continue to prioritize space and affordability over proximity to the city, while luxury listings in York Region are attracting renewed interest from move-up buyers and investors taking advantage of softer prices. This blend of suburban demand and selective urban resurgence is helping maintain balance across the GTA.

Balanced Conditions Emerging

The number of new listings rose by 3.8% year-over-year according to the GTA Market Watch, while active listings increased by 8.9%. This growing supply, paired with steady demand, has helped keep the market in a balanced state — where neither buyers nor sellers hold a significant advantage.

The average days on market (DOM) increased slightly to 51 days, compared to 47 in 2024, while the property days on market (PDOM) rose to 61 days. These small shifts point toward a market that’s adjusting to the new normal rather than cooling dramatically.

Outlook for Fall 2025

Heading into the final quarter of 2025, momentum may continue to build. Buyers appear more confident navigating fixed-rate environments, and sellers are becoming more realistic about pricing strategies.

As TRREB’s Chief Market Analyst noted, the GTA still faces affordability challenges, but improved borrowing conditions and strong local employment should keep activity steady.

For those considering a move, early autumn may offer one of the best windows we’ve seen all year — before winter slows the pace and new-year price pressures emerge.

Conclusion

Overall, the September 2025 GTA Market Watch paints a picture of a cautiously improving market: steady, realistic, and poised for gradual growth.

Confidence is creeping back, and for the first time in months, both buyers and sellers are finding their footing again.

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