Toronto Regional Real Estate Board August Market Watch

As we settle into fall, the GTA real estate market is showing some important shifts worth noting. While 2025 has been marked by uncertainty, the fundamentals remain healthy, and we’re beginning to see clear signs of renewed activity.

3 Key Takeaways for Fall 2025

Sales are improving, with five straight months of year-over-year growth.
Inventory is at record highs, giving buyers more choice and negotiating power.
Prices are steady but softening, with condos presenting some of the strongest opportunities.

Market Conditions

Sales improving: August recorded 5,211 transactions, up 2.3% from last year—the fifth consecutive month of growth.
Listings surging: New listings jumped 22.4% year-over-year, with inventory reaching 27,495 homes (over five months of supply). We are firmly in a buyer’s market.
Prices steady but softening: The average GTA home price was $1,022,143 in August, down 5.2% annually. Detached homes fell ~5%, townhomes 4.9%, and condos 4.2%. Despite declines from the 2022 peak, values have been relatively flat for four years, signalling underlying stability.
Rates holding steady: Borrowing costs remain in the low-4% range, with another minor drop expected before year-end - possibly coming as early as next week - further improving affordability.

What This Means for Buyers

Strong negotiating power with sellers.
Record-high inventory across all housing types.
Exceptional opportunities in the condominium market—many trading well below replacement cost, with ownership costs now comparable to renting.

This fall may represent a rare opportunity to enter the market before mass confidence rebounds and prices begin moving upward again.

What This Means for Homeowners

If you’ve owned your home for more than five years, you’ve likely seen strong appreciation. While prices are below their 2022 peak, they remain well above historical averages. For many, this is an ideal time to consider:

Upsizing into a larger property while prices are soft.
Right-sizing into a home that better suits your lifestyle.
Investing in a rental property, especially in the condo sector.

Looking Ahead

The first half of 2025 brought plenty of global and domestic uncertainty, but market cycles like this are nothing new. Historically, periods of adjustment are followed by recovery and growth. With demand improving, rates stable, and confidence gradually returning, we expect transaction volumes to continue rising through the fall and into 2026.

Final Thoughts + A Gift for You

Whether you’re a first-time buyer, seasoned investor, or long-time homeowner, today’s market offers opportunities worth exploring. The key is to stay informed, understand the dynamics in your micromarket, and be ready when the right property presents itself. If you’d like a detailed look at your neighbourhood or are considering making a move, I’d be happy to walk you through the numbers and opportunities.

As a small thank-you for reading this far, I have a number of complimentary tickets to the Fall Home Show. If you’d like a pair, simply reply to this email and I’ll set them aside for you!

Wishing you a successful and enjoyable fall season—I look forward to connecting with you soon.

Fall Market Update