Toronto Housing Market Outlook 2025
Table of contents
Toronto Market Report Summary
- The average selling price of a home in Toronto decreased by 5.5% year-over-year to $995,100 in June 2025.
- The average selling price of a single-family home in Toronto decreased by 5.9% year-over-year to $1,216,000 in June 2025.
- The average selling price of a townhouse/multiplex in Toronto decreased by 7.1% year-over-year to $739,500 in June 2025.
- The average selling price of a condo in Toronto decreased by 8% year-over-year to $585,100 in June 2025.
- The average rent in Toronto decreased by 5% year-over-year to $2,587 for June 2025.
- July 24, 2025: Today’s lowest mortgage rate in Toronto is
for a 5–year fixed.
Composite Home Prices
The average selling price of a home in Toronto was $995,100 for the month of June 2025, that’s decreased by 1.7% compared to the previous month. On a year-over-year basis, Toronto home prices have decreased 5.5% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in Toronto was $1,216,000 for the month of June 2025, that’s decreased by 2% compared to the previous month. On a year-over-year basis, single-family home prices in Toronto have decreased by 5.9% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Toronto was $739,500 for the month of June 2025, that’s decreased by 2.1% compared to the previous month. On a year-over-year basis, the price of a townhouse in Toronto has decreased by 7.1% over the last 12 months.
Condo Prices
The average selling price of a condo in Toronto was $585,100 for the month of June 2025, that’s decreased by 1.4% compared to the previous month. On a year-over-year basis, the price of a condo in Toronto has decreased 8% over the last 12 months.
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Toronto Housing Market Summary
Data from the Toronto Regional Real Estate Board (TRREB) indicates that the average price of resale residential homes sold across Toronto in June 2025 was $995,100, and it decreased of 5.5% compared to a year ago.
TREBB also reported a sales-to-new-listings ratio (SNLR) of 31%, indicating a Buyers in Toronto for June 2025.
Toronto Housing Market Recovery Gains Momentum as Affordability Improves
According to the Toronto Regional Real Estate Board (TRREB), Toronto’s real estate market continued to show early signs of recovery in June 2025, although overall conditions remain soft by historical standards. Affordability improved thanks to lower borrowing costs and a modest pullback in home prices. Toronto area realtors recorded 6,243 home sales, down 2.4% from June 2024, but up 8.1% month-over-month on a seasonally adjusted basis.
New listings surged 7.7% annually to 19,839, while active listings climbed 33.8%, pushing months of inventory (MOI) to 4.6. That’s well into balanced territory but still below the condo segment’s cooler MOI of 7. With more supply arriving, particularly in higher-end neighbourhoods like Lawrence Park and the Annex, sellers are adjusting expectations and slashing asking prices to compete.
- Average GTA home price: $1,101,691 (–5.4% YoY)
- Detached average: $1,303,089 (–6%)
- Condo average: $712,548 (–5%)
- Median condo price: $630,000
- Months of Inventory (MOI) for houses: 4.6, MOI for condos: 7
- Share of homes selling above asking: 29% for houses, 17% for condos
Some segments, especially detached homes over $3 million, are seeing sellers proactively cut prices. In Lawrence Park, for instance, listings over $4M are stacking up as homebuyers focus on better value elsewhere. Motivated sellers are testing price drops earlier in the listing cycle to stay competitive as July brings a fresh wave of inventory.
Realtors report that while buyer sentiment is stabilizing, households are cautious. Economic uncertainty, higher unemployment, and stricter lending requirements are creating friction in deals, even for those with strong equity positions. Bridge financing surprises and last-minute mortgage denials remain risks for buyers and sellers alike.
Mortgage Strategy Takeaways as Toronto Edges Toward Stability
For homebuyers, soft pricing and growing inventory are creating leverage; however, patience remains key. The surge in listings means more opportunities to negotiate, especially in mid-to-high price segments where sellers are adjusting faster. But closing timelines and financing conditions are tighter than in past years, so pre-approval and contingency planning are critical.
Renewers may benefit if the Bank of Canada continues its rate-cutting cycle later this year. For now, many are stretching amortizations to offset the payment shock from renewing at today’s higher rates. If job security is uncertain, some may consider downsizing or renting temporarily until market conditions improve.
Refinancers, particularly investors or those tapping equity for renovations or debt consolidation, should stay cautious. With prices down 5–6% from last year, loan-to-value ratios may no longer support maximum equity takeout, especially for condos or homes purchased at peak pricing.
From a monetary policy perspective, the Bank of Canada will be closely watching Toronto. The city’s slower pace of sales recovery, higher unemployment, and rapidly growing supply all reinforce the case for further rate cuts. However, the BoC will also weigh geopolitical tailwinds, like the improving US trade relationship, before acting. A gradual easing path still seems the most likely trajectory through fall 2025.
Month-over-Month Market Expectations for Toronto
Transactions – Number of Sales
The number of sales in Toronto was 6,243 during June 2025, that’s unchanged by 0% compared to the previous month. On a year-over-year basis, sales in Toronto have decreased by 2.4% over the last 12 months.
New Listings
The number of new listings in Toronto was 19,839 during June 2025, that’s decreased by 9.1% compared to the previous month. On a year-over-year basis, new listings in Toronto have increased by 7.7% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in Toronto was 31% during June 2025, indicating a Buyers. On a monthly basis, that’s increased by 10% compared to the previous month. Toronto’s yearly sales to new listings ratio has decreased by 9.4% over the last 12 months.
The sales to new listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market in which buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market.
Market Breakdown By Property Type for Toronto
Annual Changes to Composite Home Prices in Toronto
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Toronto Market Rents Summary
The average rent in Toronto was $2,587 for the month of June 2025, which decreased by 5% on a year-over-year basis.
The average rent for a bachelor apartment in Toronto was $0 for the month of June 2025, which 0 by 0% on a year-over-year basis.
The average rent for a 1-bedroom apartment in Toronto was $2,308 for the month of June 2025, which decreased by 6% on a year-over-year basis.
The average rent for a 2-bedroom apartment in Toronto was $2,956 for the month of June 2025, which decreased by 8% on a year-over-year basis.
The average rent for a 3-bedroom apartment in Toronto was $2,308 for the month of June 2025, which decreased by 8% on a year-over-year basis.
How Does Renting Compare with Homeownership in Toronto?
Each $100,000 in mortgage balance costs an average of $522.77 per month on nesto’s lowest fixed 5-year rate at
Rental Price Changes by City
Rental Price Changes by Province
Rental Price Growth by Housing Type
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Frequently Asked Questions on Toronto Housing Market Outlook for 2025
Will Toronto housing prices go up in 2025?
Toronto home prices are expected to increase moderately in 2025 due to low housing supply and strong demand. Population growth and falling mortgage rates will encourage more buyers to enter the market.
Will Toronto’s housing market crash?
A market crash is unlikely, but affordability challenges will continue. Due to limited inventory and sustained demand, the market is expected to remain competitive.
Is now a good time to buy in Toronto?
If prices stabilize and mortgage rates decline, 2025 could offer a good window to buy. Buyers should monitor Toronto mortgage rates and act quickly when conditions improve.
How affordable will Toronto homes be in 2025?
Toronto remains one of the least affordable cities in Canada, but stabilizing prices and wage growth may help offset affordability concerns.
How do I get pre-approved for a mortgage in Toronto?
To get pre-approved for a mortgage, assess current Toronto mortgage rates, meet lender requirements, and determine how much you can afford. A preapproval or a prequalification could strengthen your position in this competitive market.
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