Toronto Housing Market Outlook 2025
Table of contents
Toronto Market Report Summary
- The average selling price of a home in Toronto decreased by 5.4% year-over-year to $981,000 in July 2025.
- The average selling price of a single-family home in Toronto decreased by 5.7% year-over-year to $1,198,800 in July 2025.
- The average selling price of a townhouse/multiplex in Toronto decreased by 7.9% year-over-year to $722,100 in July 2025.
- The average selling price of a condo in Toronto decreased by 8.1% year-over-year to $577,600 in July 2025.
- The average rent in Toronto decreased by 5% year-over-year to $2,593 for July 2025.
- August 17, 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 $981,000 for the month of July 2025, that’s decreased by 1.4% compared to the previous month. On a year-over-year basis, Toronto home prices have decreased 5.4% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in Toronto was $1,198,800 for the month of July 2025, that’s decreased by 1.4% compared to the previous month. On a year-over-year basis, single-family home prices in Toronto have decreased by 5.7% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Toronto was $722,100 for the month of July 2025, that’s decreased by 2.4% compared to the previous month. On a year-over-year basis, the price of a townhouse in Toronto has decreased by 7.9% over the last 12 months.
Condo Prices
The average selling price of a condo in Toronto was $577,600 for the month of July 2025, that’s decreased by 1.3% compared to the previous month. On a year-over-year basis, the price of a condo in Toronto has decreased 8.1% over the last 12 months.
We’re curious…
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 July 2025 was $981,000, and it decreased of 5.4% compared to a year ago.
TREBB also reported a sales-to-new-listings ratio (SNLR) of 35%, indicating a Buyers in Toronto for July 2025.
Toronto Home Sales Rebound Past 6,000 Units as Condo Prices Fall 8%
According to the Toronto Regional Real Estate Board (TRREB), the Greater Toronto Area (GTA) recorded its strongest July sales since 2021, signalling a shift in market momentum after months of hesitation earlier in the year. TRREB reported 6,100 home sales in July, up 10.9% from a year earlier and marking the fourth consecutive monthly increase. Seasonally adjusted data showed sales climbed 13% from June, while new listings rose 5.7% year-over-year to 17,613.
Buyers Still Have the Advantage Despite Market Tightening
Home sales growth outpaced new listings, leading to slightly firmer supply-demand conditions. However, decades-high inventory levels mean buyers continue to hold the upper hand, with many sellers showing more flexibility on pricing.
Home Prices Continue to Face Downward Pressure
The MLS Home Price Index Composite benchmark in Toronto fell 5.4% from July 2024, and the average selling price declined 5.5% to $1,051,719. On a month-over-month seasonally adjusted basis, both remained unchanged from June. Condominiums experienced the steepest declines at 8.1% year-over-year, reflecting higher supply and softening rental demand. Detached homes posted more minor drops but still contributed to the overall price weakness.
Affordability in the GTA Improves but Remains a Challenge
Lower home prices and slightly reduced borrowing costs have improved affordability for some buyers, helping lift sales. TRREB notes that further interest rate relief would boost activity and stimulate related economic benefits such as job creation and spending in housing-related industries.
Impact on Mortgages and Homebuyers in Toronto
For homebuyers, declining prices and abundant supply offer more options and negotiating room, though stress test requirements remain a hurdle. Renewers could see some payment relief if fixed rates edge lower, while those looking to refinance may take advantage of stabilizing home values to access equity. The Bank of Canada may view Toronto’s sales rebound as evidence that modest rate cuts could help restore market confidence without triggering rapid price acceleration.
Month-over-Month Market Expectations for Toronto
Transactions – Number of Sales
The number of sales in Toronto was 6,100 during July 2025, that’s decreased by 2.3% compared to the previous month. On a year-over-year basis, sales in Toronto have increased by 13.2% over the last 12 months.
New Listings
The number of new listings in Toronto was 17,613 during July 2025, that’s decreased by 11.2% compared to the previous month. On a year-over-year basis, new listings in Toronto have increased by 8.1% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in Toronto was 35% during July 2025, indicating a Buyers. On a monthly basis, that’s decreased by 10.1% compared to the previous month. Toronto’s yearly sales to new listings ratio has increased by 4.7% 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
We’re curious…
Toronto Market Rents Summary
The average rent in Toronto was $2,593 for the month of July 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 July 2025, which 0 by 0% on a year-over-year basis.
The average rent for a 1-bedroom apartment in Toronto was $2,310 for the month of July 2025, which decreased by 6% on a year-over-year basis.
The average rent for a 2-bedroom apartment in Toronto was $2,942 for the month of July 2025, which decreased by 8% on a year-over-year basis.
The average rent for a 3-bedroom apartment in Toronto was $2,310 for the month of July 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 $528.19 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
We’re curious…
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.
Why Choose nesto
At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are non-commissioned, salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and advice quality. nesto aims to transform the mortgage industry by providing honest advice and competitive rates using a 100% fully digital, transparent, seamless process.
nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.
Contact our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.
Ready to get started?
In just a few clicks, you can see our current rates. Then apply for your mortgage online in minutes!
