Toronto & Area Market Update: 
When to Buy or Sell in 2025

Toronto’s housing market is calmer than the headlines suggest. TRREB reports show GTA July sales at 6,100 units – the busiest July since 2021 – up 10.9% from last year. The average selling price was about $1,051,719, roughly 5% below summer 2024. That puts the benchmark HPI near $981,000 (down 5.4% YOY). Meanwhile, inventory is up (active listings ~30,215, +26.5% YOY so competition favours buyers (the sales-to-listings ratio is only ~35%. . In short: prices have edged down and leveled off, sales are picking up, and buyers have more choice – but well-priced homes are still selling.

Freehold vs. Condo Trends

Different property types are behaving differently. Condo apartments are the weakest segment: the GTA condo average price is about $651K (down ~9–10% YOY, and condo sales/activity lag other segments. By contrast, freehold homes have held up better: detached houses are averaging roughly $1.36M (down 4–5% YOY) and freehold townhomes ~$930K (down ~9% YOY. In practice this means a condo buyer can find more bargains now, whereas freehold owners still enjoy relatively stronger pricing. (For example, a recent market report noted Q2-2025 resale condo prices were about $695K – down ~$48K from Q2-2024, but actually up 0.9% from Q1-2025.  Overall, both markets are steadying: sales are rising month-over-month, but price changes have flattened.

Mortgage Rates & Affordability

Interest rates have probably peaked. The Bank of Canada has held its overnight rate at 2.75%(prime ~4.95%), so most lenders’ fixed 3–5 year mortgages are around 4–5% (in Toronto a common 3-year fixed is ~3.99%.  Economists forecast about two more cuts (50 basis points each) by late 2025. In other words, borrowing costs are still high by historical standards, but they’re lower than a year ago and may fall further. TRREB’s president notes that this combo of lower prices and easing rates is starting to bring buyers back in.  (If you have questions about timing your mortgage, speak to a mortgage specialist – just remember the data: rates are not dropping much further until the economy cools more.

Should You Buy or Sell Now?

There’s no one-size-fits-all answer, but the data point the way. Buyers are in a strong position: you have more choices and negotiating leverage, and prices are about as low as they’ve been in a few years.  If you find a home you love, buying now could be smart – you lock in a lower price, and future rate cuts expected by year-end would only improve your deal.  Sellers face more stock on the market, so realistic pricing and presentation are crucial. Well-priced homes in desirable areas (inside Toronto or popular York Region suburbs) will still sell steadily. If you can wait a few months, looser rates should draw extra buyers, but if you need to sell now, take advantage of the current sales momentum (July activity was higher than last year’s)

Key takeaways:

• For Buyers: Sellers are motivated and TRREB notes buyers can now negotiate discounts with many listings to choose from. With prices about 5% below last summer and rates stable, locking in a home now could pay off if values recover later.
• For Sellers: Recognize it’s a balanced market, not a boom. Highlight your home’s strengths and price it to market. (Overpricing or expecting a bidding war is a mistake.) If you can hold off, projected rate cuts should attract more buyers; if not, act while summer demand is up. 
• Bottom Line: Don’t wait for dramatic price swings. Sales and prices have basically flattened over the last few months, meaning the market has found a floor. Savvy buyers see this as an opportunity (more inventory + slightly lower prices), and savvy sellers get contracts without relying on an overheated market.

Local Perspective

These trends hold across the GTA – from downtown Toronto to Vaughan, Richmond Hill, Thornhill, Aurora and Newmarket. For example, Toronto’s own median home price is about $910K (only modestly down from last year), reflecting a similar balance of supply and demand. Each community varies, but no area is immune to the overall trend: more listings, moderate price dips, and cautious buyers.

I’ll be frank: I’m not here to sugar-coat or hype. The numbers above (from TREB’s reports and market analysts) tell the story. Consider me your local market guide – I track these stats every month and translate them into plain advice. If you’re wondering “Is now a good time for me?”, let’s talk specifics. Whether you’re buying or selling, I’ll give you a straight, data-backed opinion and a plan that fits your goals.

Reach out anytime with questions about prices, mortgages, or timing.
The housing market is dynamic, but with the right strategy – and expert help – you can make a confident move.