The Greater Toronto real estate market showed its strongest momentum of the year this July with sales volume surging and inventory rising. After a long stretch of cautious activity, buyers are re-entering the market with greater confidence.
Sales Jump as Buyers Step Off the Sidelines
TRREB reported 6,213 home sales across the GTA in July, marking a 10.9% increase over the same month last year. This makes July 2025 the busiest July since 2021 – a clear signal that improved affordability and steadier mortgage conditions are motivating movement.
Sales also climbed 13% month-over-month (seasonally adjusted) – the largest monthly increase in nine months.
Inventory Builds, Prices Ease
The average selling price across the GTA was $1,051,719, down 5.5% year-over-year, while the MLS® Home Price Index (HPI) benchmark came in at $979,000, reflecting a 5.4% annual decline.
Meanwhile, active listings reached 30,215 – a 26.2% increase from last year, offering buyers more choice. New listings in July totalled 17,613, up 5.7% compared to July 2024.
What’s Fuelling the Shift?
According to TRREB, improved affordability is one of the key factors behind the sales rebound. Prices have declined moderately year-over-year giving buyers more flexibility. Borrowing costs have begun to ease slightly with expectations of further rate cuts. Put simply, many buyers appear to have accepted that this is the “new normal,” and they’re ready to make a move.
What This Means for You
For Buyers:
With prices softening and inventory rising, the current market offers more opportunity – especially for those who were priced out during the 2021–2022 peaks. It’s still competitive in sought-after neighbourhoods, but there’s more room to explore and negotiate.
For Sellers:
Sales are rising, but pricing remains crucial. Well-maintained, well-marketed homes are selling, but buyers have more options and are value-driven. Strategic preparation and local expertise is key.
Midtown Perspective
In neighbourhoods like Lytton Park, Allenby, and Chaplin Estates, we’re seeing steady foot traffic return to open houses and motivated buyers making serious offers. Detached homes in family-friendly school zones continue to perform well when appropriately priced.
Thinking of Making a Move?
Whether you’re planning to buy, preparing to list, or simply want to understand where the market’s headed, we’re here to help you navigate your next step with clarity and confidence. Reach out to us at clientcare@lomeirwin.com.