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Toronto Market Report Summary

• The average selling price of a home in Toronto decreased by 5.2% year-over-year to $969,700 in August 2025.
• The average selling price of a single-family home in Toronto decreased by 5.6% year-over-year to $1,184,700 in August 2025.
• The average selling price of a townhouse/multiplex in Toronto decreased by 7.9% year-over-year to $715,100 in August 2025.
• The average selling price of a condo in Toronto decreased by 7% year-over-year to $571,500 in August 2025.
• The average rent in Toronto decreased by 3% year-over-year to $2,606 for August 2025.
• September 23, 2025: Today’s lowest mortgage rate in Toronto is for a 5–year fixed.

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Composite Home Prices

Single-family Home Prices

Townhouse and Multiplex Prices

Condo Prices

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 August 2025 was $969,700, and it decreased of 5.2% compared to a year ago.

TREBB also reported a sales-to-new-listings ratio (SNLR) of 37%, indicating a Buyers in Toronto for August 2025.

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Toronto Home Prices Fall 27% From Peak And Return To 2021 Levels

According to the Toronto Regional Real Estate Board (TRREB) for August 2025, the Greater Toronto Area (GTA) housing market continued to face headwinds as average home prices fell back to levels last seen in early 2021. Sales activity slowed after 4 months of growth, signalling a temporary pause in recovery while inventory climbed sharply.

GTA Sales Down 1.8% in August as Listings Jump 12%

Toronto recorded 5,272 residential sales in August, down 1.8% from July but up 2.3% compared with last year. New listings surged by 12% YoY, lifting active inventory by 35%. With the sales-to-new-listings ratio (SNLR) at 37%, conditions are firmly tilted toward buyers.

• Residential sales: 5,272, down 1.8% month over month
• Average home price: $1.225 million, down 7% YoY and 27% below the February 2022 peak
• New listings: up 12% annually, active listings up 35% 
• Sales-to-new-listings ratio: 37% signalling a buyers’ market

Average GTA Home Prices Now Below 2017 Inflation-Adjusted Levels

Average prices across the GTA fell to levels last recorded in February 2021. Adjusted for inflation, values have rolled back even further, now below 2017 benchmarks. Detached homes are down 5.6% YoY, while condo values dropped 7%. Nearly 3% of current listings are power-of-sale transactions, highlighting growing household financial stress.

Toronto Unemployment Hits 9% While Home Sales Stall

Toronto’s unemployment rate reached 9% in August, the highest in more than a decade outside the pandemic period. Job insecurity, combined with higher inventory, has left many potential buyers on the sidelines. RBC analysis suggests the slowdown is likely a temporary pause, with easing trade tensions and anticipated Bank of Canada rate cuts expected to gradually bring buyers back to the market.

Residential Building Permits Up $329 Million In July, Adding 24,000 New Homes

Toronto continues to drive national housing construction. Residential building permits surged in July, led by multi-unit projects worth $329 million. In total, municipalities approved over 24,000 new homes, with Toronto accounting for the bulk of growth. While this new supply will eventually help affordability, in the near term, it has added to the imbalance between listings and sales.

Downtown Office Vacancy Drops To 17.7% As Rents Rise 20% YoY

Beyond residential housing, Toronto’s office sector is showing renewed strength. Downtown landlords are reducing tenant incentives as demand for prime office space rises, with effective rents up 20% YoY. This shift reflects employers mandating staff back to the office and signals improving confidence in the city’s commercial real estate market.

Ottawa Commits 4,000 New Homes To Toronto Under Build Canada Homes Program

The federal Build Canada Homes agency announced plans to build 4,000 affordable units on federal land in 6 cities, including Toronto. The $13 billion program will prioritize modular and factory-built housing methods to reduce costs and expedite delivery. Transitional housing and rental protection funds are also part of the initiative, aiming to ease pressure on affordability in the GTA.

Mortgage Implications for Toronto Buyers and Sellers

• Buyers now hold more negotiating power as supply outweighs demand. Those with secure financing can take advantage of lower home prices and reduced competition.
• Sellers must adjust pricing strategies to reflect market conditions, as overpricing risks properties languishing on the market.
• Mortgage holders face a mixed outlook. With the Bank of Canada expected to further ease monetary policy, fixed and variable mortgage rates may edge lower, offering some relief to homeowners looking to renew and refinance their mortgages.

Toronto’s housing market is in reset mode. Prices have corrected sharply, sales have slowed, and supply continues to build. The coming months will test whether expected rate cuts and improved buyer sentiment can stabilize the market or if further declines are ahead.

Month-over-Month Market Expectations for Toronto

Transactions –  Number of Sales

New Listings

Real Estate Market

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

Toronto Market Rents Summary

The average rent in Toronto was $2,606 for the month of August 2025, which decreased by 3% on a year-over-year basis.

The average rent for a bachelor apartment in Toronto was $0 for the month of August 2025, which 0 by 0% on a year-over-year basis.

The average rent for a 1-bedroom apartment in Toronto was $2,314 for the month of August 2025, which decreased by 5% on a year-over-year basis.

The average rent for a 2-bedroom apartment in Toronto was $2,946 for the month of August 2025, which decreased by 7% on a year-over-year basis.

The average rent for a 3-bedroom apartment in Toronto was $2,314 for the month of August 2025, which decreased by 7% on a year-over-year basis.

How Does Renting Compare with Homeownership in Toronto?

Each $100,000 in mortgage balance costs an average of $520.08 per month on nesto’s lowest fixed 5-year rate at and $527.84 per month on nesto’s lowest adjustable 5-year rate at . For each $100,000 in mortgage balance, a 0.25% change in Canada’s policy rate impacts the monthly payment by $13.71. Rates used for calculation are those offered on insured purchases with less than a 20% downpayment on a 25-year amortization. Canada’s policy rate is 2.50%, and nesto’s prime rate is set to 4.70%.

Rental Price Changes by City

Rental Price Changes by Province

Rental Price Growth by Housing Type

Frequently Asked Questions on Toronto Housing Market Outlook for 2025

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