GTA Real Estate Market Watch – August 2025: Sales Rise, Listings Surge, and Prices Adjust
The Greater Toronto Area housing market saw significant movement in August 2025, with sales ticking upward, listings soaring, and prices continuing to adjust. According to the Toronto Regional Real Estate Board (TRREB), 5,211 home sales were reported in August, marking a 2.3% year-over-year increase. While this might not sound dramatic on its own, the underlying dynamics tell a bigger story about where the market is heading.
Sales Activity: Buyers Return, but Not in Full Force
After months of subdued activity, August’s sales growth signals that some buyers are stepping back into the market. The Bank of Canada’s recent interest rate cuts have played a big role, improving affordability for households that were previously sidelined.
However, this recovery is still modest compared to the highs of previous years. Buyers are more selective, and affordability remains stretched despite lower mortgage rates. The increase in sales is encouraging but not yet indicative of a full-blown rebound.
A Flood of New Listings
Perhaps the most striking number from August is the surge in new listings. Over 27,400 properties came on the market, a staggering 115% jump compared to August 2024.
This influx of supply has reshaped the balance of power in the housing market. Buyers now have more options than at any point in recent years, and with greater choice comes stronger negotiation leverage. For sellers, this means pricing competitively and being open to offers is no longer optional—it’s essential.
GTA Real Estate Average Prices: A Gradual Adjustment
With inventory climbing and buyers gaining the upper hand, prices have edged downward. The average selling price in August was $1,022,143, representing a 5.2% decline year-over-year.
Breaking it down by housing type:
• Detached homes averaged $1.32 million, down about 5.6%.
• Semi-detached homes averaged $1.15 million, down 4.5%.
• Townhouses came in at $951,500, down 5.6%.
• Condo apartments averaged $686,500, down 10.6%.
The steepest correction is being felt in the condo sector, which has struggled with both investor sell-offs and affordability constraints for first-time buyers. Detached homes, while still in high demand in certain neighborhoods, are also adjusting to more cautious buyer sentiment.
Economic Backdrop: Rates, Jobs, and Inflation
The broader economy is setting the tone for the market. Inflation remains contained at 1.9%, while the Bank of Canada has reduced its overnight rate to 2.8%, helping bring down borrowing costs. Mortgage rates in August averaged around 5.6% for a five-year term, down slightly from earlier in the year.
Employment in Toronto continues to grow at a modest pace, with job growth up 1.9% year-over-year, and unemployment sitting at 8.7%. These mixed signals mean that while economic conditions are stabilizing, buyers and sellers alike remain cautious.
What This Means for GTA Real Estate Buyers
For buyers, this is one of the most favorable markets in years. More listings mean greater choice across neighborhoods and housing types. With sellers adjusting expectations, buyers can negotiate on both price and conditions. If you’ve been waiting on the sidelines, the fall market could present opportunities to secure a home without the bidding wars that once defined Toronto real estate.
What This Means for GTA Real Estate Sellers
For sellers, strategy is key. Homes priced too aggressively are sitting longer and attracting fewer offers. With inventory at record highs, standing out matters more than ever—whether through staging, professional marketing, or realistic pricing. While demand is slowly improving, buyers now have the luxury of patience and choice.
Looking Ahead
The GTA real estate market in late 2025 will continue to be shaped by interest rate movements, affordability, and economic growth. If mortgage rates continue to trend downward, sales could pick up further into the fall. But with such a large supply of homes on the market, buyers will likely maintain leverage in negotiations well into 2026.
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