August closed out the summer market on a measured but constructive note. Across the Greater Toronto Area (GTA), activity improved modestly year-over-year, while buyers benefitted from greater choice and the ability to make decisions without the frenzied pace of past years. Sellers who aligned their pricing with the market continued to find success, while buyers enjoyed more negotiating power in a well-supplied environment.
“Compared to last year, we have seen a modest increase in home sales over the summer. With the economy slowing and inflation under control, additional interest rate cuts by the Bank of Canada could help offset the impact of tariffs. Greater affordability would not only support more home sales but also generate significant economic spin-off benefits,” said TRREB President Elechia Barry-Sproule.
TRREB (Toronto Regional Real Estate Board) reported 5,211 home sales throughout the GTA in August, up 2.3% from last year. The increase was modest, but notable given the higher level of listings. There were 14,038 new listings, a 9.4% annual gain. By month’s end, active listings totaled 27,495, up more than 21% from last August, even though slightly lower than July.
This surge in supply created a balance in the market. Buyers had more time and selection, while sellers who priced appropriately still transacted efficiently. Where properties were overreaching, however, days on market lengthened. On average, homes took 49 days to sell in August versus 44 days last year, and sale-to-list ratios slipped to 97%, down from 99% in August 2024.
The average GTA selling price was $1,022,143, down 5.2% year-over-year. The MLS® Home Price Index benchmark also declined 5.2%, bringing the benchmark price to $969,700, its lowest level since early 2021.
By property type for the GTA:
- Detached homes averaged $1.31M, down 7.2%.
- Semi-detached homes averaged $980K, down 4.5%.
- Freehold townhomes averaged $860K, down 3.8%.
- Condominiums averaged $642K, down 4.8%
Despite the downward pressure on prices, on a seasonally adjusted basis, both the benchmark and average values were flat compared to July, suggesting that the market may be finding its footing.
The City of Toronto mirrored these trends but with slightly different dynamics. The average selling price was $992,085, a 3.6% decline year-over-year, less steep than the GTA overall, though a 5% drop from July. The City recorded 1,779 sales, up 3.6% annually, while the benchmark price settled at $953,800, down 3% year-over-year.
“A household earning the average income in the GTA is still finding it challenging to afford the monthly mortgage payment associated with the purchase of an average-priced home. This is even with lower borrowing costs and selling prices over the past year. Further relief in borrowing costs would see an increased number of buyers move off the sidelines to take advantage of today’s well-supplied market,” said TRREB Chief Information Officer Jason Mercer.
Toronto’s sales-to-new-listings ratio came in at 39%, marginally stronger than the GTA’s 37%, but both remain in clear buyer’s market territory.
August underscored a shift from extremes toward balance. Buyers now benefit from selection and negotiating room, while sellers who present and price strategically can still achieve positive results. Affordability remains the governor on the pace of recovery, with elevated borrowing costs keeping some buyers cautious.
TRREB noted that any further relief in interest rates could help bring more demand back into the market. Yet broader economic uncertainty with trade tensions, immigration policy shifts, and job market softness continues to weigh on confidence.
As we move into the fall market, the story is one of cautious stability: transactions are happening consistently, prices are holding flat month-over-month, and buyers are enjoying meaningful choice. For both sides, the environment rewards careful preparation, realistic pricing, and decisive action when the right property appears.
