OCTOBER 2025 - in review

Toronto Real Estate Market Summary – October 2025

The Greater Toronto Area real estate market showed a mix of stabilization and adjustment in October 2025. Overall home sales slowed compared to last year, while new listings surged and prices softened slightly as borrowing costs began to ease.

Market Overview

Home sales totaled 6,138, down 9.5 % from October 2024.

The average selling price across all property types was $1,054,372, representing a 7.2 % decline year-over-year.

At the same time, new listings increased by 27 %, giving buyers more choice and relieving some of the supply pressure that had defined earlier months.

Economic Backdrop

Economic indicators show mixed momentum.

Real GDP contracted by 1.6 % in Q2, though Toronto employment grew slightly (+0.5 %), and inflation eased to 2.4 %.

The Bank of Canada’s overnight rate fell to 2.3 %, with typical mortgage rates hovering near 6 %. These lower borrowing costs have started to rebuild buyer confidence after a long period of rate-driven hesitation.

By Home Type

Detached homes remained the most expensive segment, averaging about $1.62 million, while condominium apartments averaged around $689,000.

Sales were lower across all categories, but price declines have slowed compared to earlier in the year, suggesting stabilization.

Market Sentiment

According to TRREB, many buyers ar

e cautiously returning as affordability improves and rates trend downward. Sellers, meanwhile, are facing longer marketing times — the average home now takes about 25 days to sell.

Outlook

The Toronto market appears to be entering a rebalancing phase.

With more listings, slightly lower prices, and falling interest rates, conditions are gradually tilting toward buyers after several years of tight supply and high borrowing costs.

**If rates continue to decline through 2026, moderate price growth could resume as confidence strengthens.

"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.

“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.