If you’ve been following Toronto’s housing market, you might find July 2025 a bit puzzling. On one hand, 6,100 homes sold — that’s nearly an 11% jump from last July and the busiest July since 2021. On the other hand, despite all this buying action, prices kept sliding, dropping around 5.5% year-over-year, with the average home price hovering just above $1 million.
So, what’s really going on? Why are more buyers jumping in while prices are still heading south? Let’s unpack it.
More Homes Selling — but Also More Homes on the Market
Here’s the key: the market isn’t just about sales volume. It’s also about supply, and supply is up big time. Active listings in the GTA surged by 26.5% compared to last year, topping over 30,000 homes by the end of July. More homes sitting on the market means buyers have plenty to choose from — but sellers have to face more competition.
Other nuggets from the market:
- New listings increased by 8.1% year-over-year.
- Homes spent longer on the market, averaging 41 days versus 36 days a year ago.
- Houses sold for around 98% of their asking price, down slightly from 99% a year earlier.
The sales-to-new-listings ratio (SNLR) — a big-picture indicator of market balance — stayed low at 35%, showing it’s still very much a buyer’s market, though just a little tighter than last summer’s 33%.
What About Different Types of Homes?
The market isn’t uniform — it looks different depending on the kind of home:
| Property Type | Price Change (YoY) | Sales Change (YoY) | Average Price |
| Detached Homes | -4.5% | +14.3% | $1.36 million |
| Semi-Detached | -2.5% | +26.5% | Just over $1 million |
| Freehold Townhomes | -8.8% | +18.3% | Around $930,000 |
| Condo Apartments | -9.4% | +6.3% | About $651,000 |
Condos took the biggest price hit, but sales there still rose modestly, showing some buyer interest at lower price points.
Why Are Prices Dropping Despite More Sales?
The answer is a mix of economic and political factors:
- Interest rates: The Bank of Canada cut rates multiple times in 2024 and early 2025, making borrowing cheaper — good for buyers. But after April 2025, the Bank hit pause, waiting to see how the economy evolves amidst mixed signals.
- Political moves: Ontario’s government, led by Premier Doug Ford, has been pushing reforms to speed up housing approvals, lower taxes and fees, and boost supply — all part of a huge plan to build 1.5 million homes by 2031. These moves aim to ease affordability but have sparked debates around environmental protections and sustainable growth.
- Economic uncertainty: Trade tensions with the U.S., immigration changes, and cautious consumer confidence make buyers hesitant to pay premium prices, even as more homes become available.
What This Means For You
If you’re buying:
The market leans in your favor right now. More listings and lower prices mean you may find a good deal—especially if you’re ready to act and negotiate. But don’t expect zero competition; well-priced homes still get attention.
If you’re selling:
It’s tougher. You’ll need to price realistically and be patient. Sales are happening, but a flood of inventory means buyers have choices and negotiating power.
The Bottom Line: A Market in Transition
Toronto’s housing market in mid-2025 isn’t simply “up” or “down.” It’s navigating a complex transition shaped by:
- Improved affordability from lower prices and mortgage rates
- Political efforts to make housing more accessible and ramp up supply
- Economic uncertainties weighing on buyer confidence
Both buyers and sellers should stay sharp, be ready to adapt, and watch how ongoing policy changes and economic developments impact the market.
Sources and Further Reading:
: TRREB July 2025 Market Summary – Zoocasa
: GTA Numbers Show Strongest July Home Sales in Four Years – TRREB
: TRREB Market Watch July 2025 PDF
: Toronto Housing to Slump into 2026: TRREB – YouTube Analysis
: GTA housing market sees best July in 4 years – CBC News
: TRREB Market Watch Official Page
: Greater Toronto housing market sees best July in four years – CTV News
