🏡 Home Sales Hit 4-Year High in July — But Prices Continue to Fall | Best Toronto Real Estate Agents & GTA Housing Market Update

July 2025 delivered the strongest July sales since the red-hot seller’s market of July 2021, when 11,033 homes changed hands. This year’s 6,100 sales mark a -44.7% drop from that peak, showing we’re still far from those frenzied seller’s market conditions.

However, price declines across the board have been a key driver in getting buyers off the sidelines. Detached, semi-detached, townhouse, and condo prices all fell year-over-year, giving motivated buyers the opportunity to secure properties at more affordable levels than last year.

📊 SALES GROWTH ACROSS ALL HOUSING TYPES 

• 6,100 homes sold across the GTA in July — up +10.9% year-over-year compared to historical lows in July 2024

• On a seasonally adjusted basis, sales rose month-over-month compared to June

• Detached homes saw the biggest shift in demand, with +12.5% more sales in the 416 and +10.9% more in the 905 suburbs versus July 2024

🏡 Active Listings Elevated, Keeping Negotiating Power in Buyers’ Hands

• Active listings reached 30,215, up +26.2% year-over-year — very high inventory levels, although slightly below June’s 31,603 listings

• New listings came in at 17,613, a +5.7% increase from July 2024

• With sales improving and new listings slowing, conditions have inched just a wee bit closer to a balanced market compared to earlier in the summer

🏷️ Year-Over-Year Price Declines Offer Buyer Opportunities

• GTA-wide average price: $1,051,719, down -5.5% year-over-year

• MLS® HPI Composite Benchmark: down -5.4% year-over-year

• All major home types posted price declines, with the largest drops in condos (-9.3%) and townhouses (-7.4%)

🏦 Economic Conditions Keep Buyers Cautious. Inflation Cools, But Unemployment Rises

• Bank of Canada overnight rate held at 5.0% in July

• Inflation eased to 1.9%, the lowest in over two years

• Toronto’s unemployment rate rose to 9.0%, the highest in recent years, which could temper demand in coming months

• The federal foreign buyer ban remains in place, but exemptions for rural and recreational properties have been expanded

🌐 Trade Uncertainty and Local Economics Shape Buyer Behaviour

The Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule noted that improved affordability, thanks to both lower prices and reduced borrowing costs, is helping more buyers enter the market. TRREB’s Jason Mercer emphasized that resolving trade tensions with the U.S. would help bolster consumer confidence, while CEO John DiMichele highlighted that loosening restrictions for certain property types could benefit regional housing markets.

🔑 Key Advice for Buyers and Sellers

• Buyers: There are still lots of homes to choose from, and prices are lower than last year. If you’re ready, this is a good time to make a move before competition increases—whether from the Bank of Canada lowering interest rates further, fewer new listings entering the market, or more buyers taking advantage of current pricing by entering the market.

  Sellers: Properties that look great and are priced realistically are selling. Buyers have options, so standing out is important — especially for condos and townhouses. Partner with a team that has a strategic marketing plan to help you succeed in this buyer’s market.

Whether you’re ready to buy or thinking of selling, the current market presents opportunities you don’t want to miss. Contact Karen's team today for a personalized strategy to help you achieve your real estate goals—whether it’s finding your dream home or getting top value for your property.