Current Market Conditions

As we step into September, the Greater Toronto Area (GTA) housing market continues to show clear signs of stabilization and balance. August recorded 5,211 home sales, a modest 2.3% increase from this time last year, highlighting steady demand amongst shifting market dynamics. More notable is the surge in supply, new listings rose by 9.4%, pushing total active listings up to 27,495 homes, that is a 22.4% increase from August of 2024. This abundance of options is giving buyers the luxury of time and choice, encouraging a more thoughtful and less hurried approach to purchasing.

Link below for previous Toronto Housing Market Reports

• Toronto Housing Market Report – August 2025
• Toronto Housing Market Report – July 2025
• Toronto Housing Market Report – June 2025
• Toronto Housing Market Report – May 2025
• Toronto Housing Market Report – April 202

Demand and Interest Rates

The Bank of Canada has maintained its policy interest rate at 2.75%, offering borrowers some certainty as they navigate the market. The next decision on rates is anticipated on September 17th, a key date that could influence buyer confidence moving forward. Meanwhile, the average home price in August declined to $1,022,143, reflecting a 5.2% drop compared to last year. This price softening, combined with steady borrowing costs, is gradually tipping the scales away from sellers and towards buyers, empowering them with more negotiating leverage.

Supply of Homes

Supply continues to be the defining feature of this market. Compared to July, when active listings peaked at 30,215 (up 26.2% from 2024), August saw a slight decrease but still maintains a strong inventory. Homes are staying on the market longer, with the average property days on market rising 11.4% to 49 days. For sellers, it’s no longer enough to just list your home and wait. Today’s buyers are more selective and cautious. Strategic pricing, professional presentation, and targeted marketing are essential to attracting serious interest.

Have any Questions: Ask us how to maximize your home’s value and showcase it to stand out in today’s market!

Market Outlook

Looking ahead, the housing market in the GTA is poised to maintain this more balanced environment through the fall. While July showed a spike in activity with up 10.9% more sales, August’s slight cooling reflects a natural seasonal shift rather than a downturn. With interest rates expected to hold steady and inventory levels remaining elevated, buyers can expect continued opportunities to make thoughtful decisions without the pressure of intense competition. Sellers, meanwhile, face a market where value and presentation are essential for success. Staying informed and adaptable will be vital to navigating the months ahead.