#MarketSnapshot
September brought a wave of renewed activity to the Greater Toronto Area (GTA) real estate market. With interest rates trending downward and more affordability in monthly mortgage payments, more homebuyers returned to the market—boosting home sales across the region.
According to the Toronto Regional Real Estate Board (TRREB), 5,592 homes were sold through the MLS® System in September 2025, an 8.5% increase compared to the same time last year. This surge in sales comes as buyers take advantage of improved affordability and the abundance of listings available.
Buyer Confidence Rebounding
TRREB President Elechia Barry-Sproule commented on the shift:
“The Bank of Canada’s September interest rate cut was welcome news for homebuyers. With lower borrowing costs, more households are now able to afford monthly mortgage payments on a home that meets their needs. Increased home purchases will also stimulate the economy through housing-related spin-off spending, helping to offset the impact of ongoing trade challenges.”
As more buyers re-enter the market, they’re also exercising more negotiation power. The average selling price declined by 4.7% year-over-year to $1,059,377, as buyers took advantage of the greater inventory to secure better deals.
Market Snapshot: Prices & Listings
Here’s a quick overview of how the GTA market performed in September 2025:
- Sales: 5,592 (⬆️ 8.5% YoY)
- New Listings: 19,260 (⬆️ 4% YoY)
- MLS® HPI Composite Benchmark: ⬇️ 5.5% YoY
- Average Selling Price: $1,059,377 (⬇️ 4.7% YoY)
- Month-over-Month Price Change: Flat (⬆️ 0.2%)
While listings were up year-over-year, new listings actually declined slightly month-over-month, suggesting the market may be tightening in some segments. This could lead to increased competition in certain areas or price ranges.
Looking Ahead
Despite the recent improvement, home sales remain below historical norms relative to the GTA’s population. TRREB Chief Market Analyst Jason Mercer emphasized the need for further relief on borrowing costs:
“Two more 25-basis-point interest rate cuts by the Bank of Canada would see monthly mortgage payments move more in line with homebuyers’ average incomes, further spurring home sales and related economic activity.”
What This Means for You
Whether you’re buying or selling, this is a transitional moment in the GTA real estate market:
- Buyers: Lower rates and a wide selection give you more leverage, but prices may stabilize if supply continues to tighten.
- Sellers: While prices are down year-over-year, increased demand could help you find serious buyers—especially with the right pricing strategy.
Need help navigating this changing market?
Our experienced team is here to guide you—whether you’re planning to buy your first home, upgrade, or list your property. Let’s talk strategy and make your move with confidence.
