Welcome back to Market Watch! Improved affordability, brought about by lower home prices and borrowing costs, is starting to translate into increased home sales. Read more to learn how this affects the Greater Toronto Area (GTA) housing market.
August 2025 saw 5,211 GTA home sales, up 2.3% year-over-year. New listings climbed 9.4% to 14,038, while the average selling price fell 5.2% to $1,022,143. On a month-over-month seasonally adjusted basis, both the MLS® HPI Composite and average price held steady.
“Compared to last year, we have seen a modest increase in home sales over the summer. With the economy slowing and inflation under control, additional interest rate cuts could further boost affordability,” said TRREB President Elechia Barry-Sproule. CIO Jason Mercer stressed that mortgage payments remain challenging for average-income households, while CEO John DiMichele emphasized the long-term role of infrastructure in sustaining growth.
In summary, sales gained slightly, listings rose faster, and prices stayed under pressure — keeping conditions favourable for buyers across the GTA.
August 2025 Market Watch Report
With affordability improving, the GTA saw a modest increase in home sales alongside a much larger rise in new listings. Prices remained flat month-over-month, giving buyers more negotiating power.
