October marked another month of adjustment in the Greater Toronto Area (GTA) housing market, as elevated inventory levels and cautious sentiment continued to define activity. Despite multiple rate cuts by the Bank of Canada over the past year, the anticipated rebound in demand has yet to fully materialize. Buyers remain discerning, sellers are recalibrating expectations, and the market continues to lean in favour of buyers.
“Buyers who are confident in their employment situation and ability to make their mortgage payments over the long term are benefiting from affordable housing market conditions relative to the past few years. However, many intending homebuyers remain on the sidelines due to uncertainty about their economic future,” said TRREB President Elechia Barry-Sproule.
The Toronto Residential Real Estate Board (TRREB) reported 6,138 home sales throughout the GTA in October, a 7.8% decline from last year, although activity rose almost 10% from September as some sidelined buyers re-engaged. The average selling price came in at $1,054,372, 7.2% below October 2024 and roughly 20% lower than the market peak in early 2022. The benchmark price, which better reflects underlying trends, was $956,800, down 5% year-over-year.
Even with steady month-over-month improvements in sales, supply continues to outpace demand. Active listings stood at 27,808, up 17% year-over-year and the highest October inventory on record. New listings totalled 16,069, with at least a third being re-listings of previously unsold properties at reduced prices. The abundance of available properties on the market gave buyers abundant choice, time, and flexibility to negotiate lower sale prices.
The sales-to-new-listings ratio (SNLR) climbed modestly to 38%, up from 29% in September, but still well below the 40% threshold that signals a balanced market. Homes took an average of 50 days to sell, up from 43 a year ago, and sold at 98% of the asking price, reflecting mild downward pressure on negotiations.
While the market broadly favours buyers, performance varies by location and property type. Within the City of Toronto, sales were up 14% month-over-month but remained 6% lower year-over-year. The average price in the city declined to $1,069,807, down 8.2% annually, while the benchmark price edged down to $941,800. Active listings in the city reached 10,357, 6% higher than last year, contributing to an environment where buyers have more time and leverage.
“The monthly mortgage payment for an average-priced GTA home continued to trend lower in October, benefitting from both lower borrowing costs, and lower selling prices. This means more buyers can now afford to purchase a home that meets their housing needs. Once we have more certainty on the economic front, including trade with the U.S. and China, home sales should increase,” said TRREB Chief Information Officer Jason Mercer.
Every major housing segment in the GTA experienced annual price declines:
- Detached homes: $1,355,506 (-7.3%)
- Semi-detached homes: $1,033,770 (-6.7%)
- Freehold townhomes: $935,042 (-7.2%)
- Condo apartments: $660,208 (-4.9%)
Detached and townhome markets saw the steepest declines, while condominiums, particularly in the 905 region continue to struggle with excess supply and affordability constraints. Condos represent roughly one-third of total inventory, yet account for only one-quarter of sales. In Toronto’s 416 area, condo sales fell 8% year-over-year, while in the 905, they dropped nearly 17%, despite more accessible prices averaging $574,000–$699,000.
Not all segments were uniformly weak. Semi-detached homes in high-demand central neighbourhoods such as Riverdale, Leslieville, and the Beaches remained relatively resilient, often selling in under three weeks and in some cases above asking, highlighting the continued appeal of well-located properties.
“Housing is essential economic infrastructure. As the population continues to grow, innovation and private capital are required to accelerate new construction across all housing types. Governments can help by modernizing tax rules, cutting buyer costs, and ending exclusionary zoning. Working together, we can rebuild confidence, create jobs, and deliver the homes Ontarians need. We have to act now,” said TRREB CEO John DiMichele.
The Bank of Canada’s continued easing with nine cuts since mid-2024, bringing the benchmark rate down to 2.25%, has yet to spark a full recovery. Fixed mortgage rates remain above 4%, while many buyers are opting for variable rates around 3.7%, anticipating further declines. Still, the combination of improving affordability, increasing consumer confidence, and declining borrowing costs could gradually set the stage for a more balanced market heading into 2026.
For now, the GTA remains a buyer’s market, defined by selection and negotiation leverage. For sellers, strategic pricing and presentation are essential, as properties that show well and are priced appropriately continue to move. For buyers, the current environment offers more opportunities and less competition than the market has seen in years.