Toronto Area Reports Most July Home Sales Since 2021
The Greater Toronto Area’s (GTA) housing market delivered its strongest July sales performance since 2021, offering a mix of encouraging momentum and persistent headwinds. There were 6,100 sales reported for the GTA through TRREB (Toronto Regional Real Estate Board), up 10.9% from July 2024 and marking a third consecutive month of seasonally adjusted gains. Sales activity increased more rapidly than new listings, indicating a modest tightening in market conditions. Yet, elevated inventory levels and price softness continue to define the landscape.
“Improved affordability, brought about by lower home prices and borrowing costs is starting to translate into increased home sales. More relief is required, particularly where borrowing costs are concerned, but it’s clear that a growing number of households are finding affordable options for homeownership,” said Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule.
The supply side remains a critical factor shaping buyer and seller behavior. Active listings surged to 30,215 by month’s end, this is a 26.5% year-over-year increase, with a substantial 33% of that total being condominium apartments, most located in the City of Toronto. New listings rose 5.7% annually to 17,613, but were down 11% from June, suggesting some seasonal slowing. This abundance of choice has shifted negotiating power toward buyers, reflected in a sales-to-new-listings ratio of 35% for the GTA and 37% for the City of Toronto, both firmly in buyer’s market territory. Properties spent an average of 30 to 41 days on the market, often with multiple listings before sale, and sold for an average of 98% of asking price.
Price trends continued their gradual retreat. The GTA’s MLS® Home Price Index Composite benchmark fell 5.4% year-over-year to $981,000, the lowest level in four years, while the average selling price of $1,051,719 was 5.5% lower than last July and down 4.5% from June. The City of Toronto fared slightly better, with a 3.9% annual price decline to an average of $1,044,576, though it saw a steeper monthly drop of 7.8%.
Breaking down by property type, detached homes in the GTA averaged $1,361,660 in July, down 4.5% year-over-year, while semi-detached homes averaged $1,041,359, a 2.5% decline. Freehold townhomes saw sharper price erosion, falling 8.8% to $929,524, and condominium apartments recorded the steepest drop, down 9.4% year-over-year to $651,483. In the City of Toronto, the average detached home sold for $1,572,832, semi-detached homes for $1,242,388, townhomes for $920,197, and condominiums for $684,257. While values in Toronto proper softened by 4.8% overall, it was less than the 7.6% decline in the surrounding 905 Region. Condos again led the downturn, sliding 8.6% in the city compared with over 10% in the suburban markets.
“Recent data suggest that the Canadian economy is treading water in the face of trade uncertainty with the United States. A key way to mitigate the impact of trade uncertainty is to promote growth in the domestic economy. The housing sector can be a catalyst for growth, with most spin-off expenditures accruing to regional economies. Further interest rate cuts would spur home sales and see more spin-off expenditures, positively impacting the economy and job growth,” said TRREB Chief Information Officer Jason Mercer.
Interest rate policy remains a key influence. The Bank of Canada has held its policy rate steady at 4.5% since April, following seven consecutive cuts from 2024 into early 2025. While lower borrowing costs were expected to spark stronger demand, high bond yields have kept five-year fixed mortgage rates hovering around 4.5%, limiting the impact on affordability. Coupled with broader economic uncertainty, particularly U.S. trade policy shifts and slower population growth, many buyers continue to wait for more favourable conditions, even as improved affordability tempts others back into the market.
Looking ahead, the second half of 2025 is expected to outpace the same period last year, with moderate price adjustments stabilizing toward year-end. For buyers, current conditions present greater choice and negotiating power, along with the possibility of locking in purchases before further market tightening. For sellers, strategic pricing and compelling presentation will be essential to stand out in a competitive environment. While the market remains in flux, the underlying trend suggests that today’s opportunities could position well-informed buyers and sellers advantageously for the next cycle.