The average residential sale price in the Toronto housing market has decreased by 3.5 per cent across year-over-year all property types between January 1 and July 31 2025 from $1,127,525 to $1,088,166. The number of sales decreased by 11.7 per cent for the same time period from 41,933 to 37,025. The number of listings increased by 16.7 per cent (from 102,641 in 2024 to 119,828 in 2025). Average sales prices across all property types are anticipated to fall by four per cent through the end of 2025, while the number of sales is predicted to also fall, by five per cent.
Trends in the Toronto Housing Market
The Greater Toronto Area in Q4 2024 experienced an overall buyer’s market and is expected to remain the same for the rest of the year with prices adjusting and affordability improving. Families are driving sales in the region with many first-time buyers returning to the Toronto housing market. Right now there is not enough inventory to keep up with the increasing demand. Economic uncertainty is the biggest challenge in the region.
There has also been a higher level of listings due to weaker buyer demand amid to economic uncertainty. Sellers in the region are adjusting their expectations, but, it takes time. consumer confidence at this time is balanced given there is a mix of those with reasonable fear of job loss, while some others feel more confident in their job security.
First-time buyers in the region are becoming older than what they were in previous years, averaging late-twenties. These new and young buyers in the region exploring different ways to enter the market, such as through receiving financial support from their families amid overall affordability concerns. There has been a slight increase in conditional sales in the higher-end market where move-up or move-over buyers cannot sell their current property.
There are some up-and-coming neighbourhoods in the region that buyers should pay attention to, including:
- Wexford-Maryvale: Has relatively greater affordability and close access to city/transit options making it an appealing choice.
- Cairelea-Birchmount: Also has relatively greater affordability and access to city/transit options.
- Banbury-Don Mills: Has significant condo construction/new condo housing that is more affordable than freehold in the area that is attractive due to its nearness to the city core and easy access to transit and highways (including the Don Valley Parkway).
