Normally Sluggish August Busier Than Usual

August usually feels like a sleepy month in real estate. Families head to the cottage, kids get ready for back-to-school, and the market takes a breather. This year was a little different. Buyers didn’t exactly storm the gates, but sales ticked up modestly, while listings grew even more. The result: a market that’s active on the surface but still firmly tilted toward buyers. Especially for condos.

The Numbers

August Sales: 5,211 homes sold in August, up 2.3% year over year

August Listings: 14,038 new listings hit the market, a 9.4% increase year over year

August Active Listings: 27,495 at month’s end—a drop from 30,215 we had in July and 31,603 we had in June - still a ton of choice for buyers.

August Average Price: $1,022,143, down 5.2% year over year. In comparison July was $1,051,719 and June was $1,101,691, so prices continue the downward trend across the board.

Chart Via https://trreb.ca/

Will the Fall Market Pick Up?

Traditionally September to November is the fall market which see’s new buyers enter the market and those that have been looking the first part of the year continue their search. The market usually pick up a bit. Although we are seeing a pick up in interest and activity in the market and sales are happening I’m certain we wont see a big increase in sales but with prices coming down I do think we will see a steady pace of sales over the next 3 months. Especially for freehold homes in the sweet spot of 1.6M or less and more so for the opening price-point as we are seeing plenty of first time home buyers or upsizes from smaller homes looking to get something more family size.

Buyers will continue to benefit from a well-supplied market. Active listings are nearly 28,000, which keeps negotiating power on their side.

Rates still sting a bit but borrowing costs have eased a bit, with average mortgage rates hovering around 4.5%- 5%, affordability remains stretched for many so a rate cut this month could help that.

Sellers are adjusting. More homeowners are accepting that 2021-style prices aren’t coming back anytime soon. Negotiation is the rule, not the exception and I am seeing more and more homes priced right rather than priced high like we were to start the year.

Still in some of the more sought after neighbourhoods with good schools, close to the Bloor Subway Line, Walkability and Parks I asm seeing the nicer move in ready homes get either quick offers or some even getting multiple offers (2-4 offers) but the selling price is what we usually expect it to sell for.

By Home Type Prices

Here’s how August shook out across property categories GTA-wide:

Detached: Avg. $1,312,240 (down -7.5% YoY in the GTA)

Semi-Detached: Avg. $980,102 (down -4.2% YoY in the GTA)

Townhomes: Avg. $860,178 (down -3.8% YoY in the GTA)

Condos: Avg. $642,195 (down -5% YoY in the GTA)

Detached homes remain the most resilient, while condos are still under the heaviest downward price pressure.

We keep telling about the condo crash but something thats not been highlighted enough is whats happened to the low rise market since its height in 2022. Click the link below to read John Pasalis’s comments.

Toronto Home Prices Down 27% From the Peak — No Quick Rebound in Sight

Economic Backdrop

TRREB highlights that Canada’s economy is “treading water.” Inflation is under control, but growth is slow, and uncertainty around tariffs lingers. A further 0.25% rate cut by the Bank of Canada later this year is possible, but it won’t dramatically change affordability overnight.

Final Thoughts

I'm not so worried about low rise Freeholds, prices have come down considerably since the peak and we are seeing plenty of interest in them especially in Toronto but even in the outer GTA when it comes to a nicely presented move in ready homes priced right.

The concern remains with condos. Especially the smaller non-family friendly ones. Just not any interest in them right now and it’s hard to say when that will change. If you are renting a 1 Bedroom and would consider entering the market by purchasing a smaller 1 Bed condo there are a lot of deals to be had with the right negotiation.

With regards to 2 & 3 Bedroom condos, they are still plentiful but noticing more and more buyers are interested and more and more sellers of them being reasonable in how they price and have adjusted expectations. Pre 2024 a 2 Bed 2 Bath condo would sell between $750K on the low end to $950K on the high depending on square feet and features, today you can find plenty in the city in the $600K - $800K range.

As always if you have any questions, concerns or want advice on buying or selling happy to chat, simply click the link below to set up a no obligation phone call.

Set Up A No Obligation Phone Call

Buyer's Getting Active, Sellers Getting Realistic.

August 2025 Market Update – Things are happening but still at a slower than usual pace.

If June felt like the warm-up act, July was the first real sign that buyers are starting to trickle back into the show. It wasn’t a stampede, but it also wasn’t the ghost town we’ve seen for much of 2025. The numbers show a little bit of momentum building—but also that we’re still in a market where patience and pricing smarts matter a lot.

The Big Picture

Sales: 6,100 homes sold across the GTA in July—up 10.9% compared to July 2024. This is the strongest July since 2021, so yes, there’s life out there.

New Listings: 17,613 hit the market, 5.7% more than last year. More choice for buyers, but sales grew faster than listings—meaning conditions tightened just a little.

Active Listings: Still high at 30,215 which means inventory is still plenty but with the increase in sales it has come down slightly from the 31, 603 we had at the end of June 2025 which is notable only because July is usually a month where things start to slow as the kids are out of school and some buyers get distracted with holidays and other activities. Not so this year. Even for myself Ive been contacted by more buyers in July than I was in February/March which is usually when we hear from most buyers entering the spring market. It’s obvious many buyers hit pause and some have now started to enter the market.

Average Price: $1,051,719—down 5.5% year-over-year. On the month, prices held steady from June.

Takeaway: More sales + a bit of tightening but still plenty of inventory heading into what is usually sleepy August for the Real Estate Industry.

Why Sales Are Up? Three main factors:

Better Affordability – Prices are lower than in the last few years and buyers see an opportunity, especially first time homebuyers or upsizes looking to go from a smaller condo to a freehold. As an example at the height of 2021 we were hard pressed to find a handful of freehold properties for sale under 1Million in Toronto. This is important as a first time buyer can opt to put less than 20% on a purchase under 1Million by opting to use CMHC Mortgage Insurance and this option was non existent in 2021, as of this update there are 848 freehold homes available for sale in Toronto at 1Million or less, so some buyers, especially first time buyers are finally saying “let’s do this.”

Borrowing Cost Relief – Rates haven’t dropped to “cheap money” territory, but any easing is helping people qualify and feel a bit more confident.

Still, mortgage rates around 5% mean buyers are picky and sensitive to price. The market isn’t rewarding overconfidence.

Reality is Setting in for Sellers - Many sellers are realizing we are not headed for any type of rebound anytime soon. This is the market today and will continue to be into the foreseeable future. So, they are loosening their grip on what they are willing to sell for and negotiating with buyers instead of waiting for that magical offer that just wont come. Which explains, higher sales but prices have come down 5.5%.

Home Type Performance Breakdown: Here’s what happened in July by category (GTA-wide):

Detached – Avg. $1,361,660, sales up but prices still -5.1% YoY.

Semi-Detached – Avg. $1,041,359, prices -2.3% YoY.

Townhomes – Avg. $849,380, prices -7.4% YoY.

Condos – Avg. $651,483, prices -9.3% YoY.

Translation: Detached homes are moving again, semis and towns are hanging in, and condos are still under the most price pressure.

What’s Actually Selling and What’s Sitting

Well-priced homes in move-in condition that are presented with the right marketing. This means staging, professional photography, styling, painting, handy men fixing up issues, landscaping if applicable, social media and online presence. Sellers need to get buyers looking at them and take advantage of, every marketing avenue, custom property websites, flyers, photography, video, instagram ads, lifestyle videos, google ads, open houses, door knocking neighbours and of course MLS, you need them all in this market. Homes using all these resources are still moving within 2–4 weeks.

What I mean about well-priced is that the sellers that are having success are pricing at or below 2021 pricing to help attract the few buyers looking.

To put things into perspective, in 2021 every home was getting 40, 60, 80+showings in a week with a blink of an eye. Today it’s more like 3, 6, 10 if you are really a unique, very nice, move in ready home in a sought after neighbourhood thats priced right with all the marketing I mentioned. Everyone else is lucky to get 1-3 showings in a week, some will go weeks without a showing when priced wrong. If you are a condo, especially a smaller one, you can expect 2-4 showings in a month unless again you are very unique and/or priced aggressively.

Overpriced listings: Sitting… and sitting. Buyers will wait you out, they have lots and lots of options to look at. Sellers will have decisions to make come the fall market in September. Either get ahead of the market and present and price right to sell before the holidays or risk sitting into and after the holidays.

Renovation projects: Only selling if priced very aggressively—construction costs are keeping many from taking them on, investors are watching but not active, many investors or developers I hear from are asking if I know of distressed sellers and really not interested in a renovation unless it’s a steal.

Economic Backdrop

TRREB points out that the Canadian economy is “treading water.” Trade uncertainty with the U.S. is real, but housing could be the growth engine—if rates ease further. Sounds like we should not see too much activity on this front to end the year, my prediction is one .25% rate drop between now and December at most. Going into 2026 could be different but difficult to predict this far out.

Where We’re At in the Cycle

Think of the market like a restaurant that’s been 3/4 empty for months. In July, more people walked in. They’re browsing the menu, maybe ordering an appetizer, but not everyone’s committing to the three-course meal yet. That “order” moment—when prices start to climb again—needs either bigger rate cuts or a sharper drop in inventory, it feels like both will take a long while to happen.

Looking Ahead

August and September will be telling. If sales keep climbing faster than listings, we’ll see more tightening into the fall. But if more sellers rush in to list for the fall market (Sept - Dec) the balance will swing back to buyers fast. As Ive mentioned in the past I believe we will see a blip of buyer activity but for the most part this will stay a buyers market in most neighbourhoods in the GTA heading into 2026.

Bottom Line: July brought the busiest mid-summer market in four years, but prices are still softer, and negotiating power remains in buyers’ hands. Sellers with realistic expectations are making deals. Everyone else? Still waiting…

As always if you have any questions, concerns or want advice on buying or selling happy to chat, simply click the link below to set up a no obligation phone call.

Set Up A No Obligation Call

"Let's Wait In The Car, The Snack's Aren't Out Yet." - July 2025 - Toronto Market Update

How Most Toronto Buyers Are Feeling Right Now

Hard to believe we are at the halfway point of 2025 already. The news has been fairly consistent throughout the year with buyers being MIA and sellers struggling to figure out how best to proceed. June numbers are out, lets unpack them as well as what I'm seeing on the ground.

The market has been challenging to say the least but we could be seeing the very early first glimpse of buyers starting to take advantage of the choice they have and more importantly for them, the negotiating power they have which is leading to the softer prices.

We’ve officially hit that part of the cycle where buyers have the upper hand—but some either do not realize it yet or they do and hope there is more of a downturn ahead so they wait. Still, they are asking questions and watching.

It’s like everyone showed up to the party early, saw the snack table wasn’t out, and decided to wait in the car.

Looking at the stats:

June 2025 wrapped up with 6,243 sales across the GTA, down 2.4% from the same month last year. On a seasonally adjusted basis, June home sales are flat month-over-month compared to May 2025.

Active listings are up a whopping 30.8% year-over-year with 31,603 available homes for sale across the GTA. New listings however are up 7.7% which is a jump but only half as much as the 14% jump in new listings we had in May 2025 and much less than the 28% in new listings we had in April 2025. Now, important to state this trend of less listings heading into summer months is normal, more listings come up in the months of March - May than June as thats the traditional Spring Market but the difference is substantial compared to the amount of listings we had from March to May. With a small uptick in sales and new interested buyers inquiring, we can see how this could possibly shift things slightly heading into the second half of the year if this trend continues.

I am seeing and hearing from more buyers, first time buyers especially. With lower interest rates, first time buyers have had time to pile up more savings and with prices declining they can now afford more, including homes they may not have been able to consider in the past that are now within their reach sitting on the market and waiting for a negotiation.

As an example the condo market has seen such a price shift that there are plenty of starter 1 Bed or 2 Bed units that are selling 20% below what they sold in the peak of 2021 and 2022. I’m talking 2 Bedrooms, mid town, next to the subway, newer buildings, move in ready that used to sell for $800,000 -$850,000 now selling for $630,000. More to come on this and houses in different neighbourhoods with similar trends of prices falling as I’ll share some of these real sold examples 2021 vs 2025 similar sales on my instagram and twitter in the coming weeks.

The average selling price in June 2025 dropped to $1,101,691, a 5.4% dip from June 2024.

So, the trend is clear: prices are softening, listings are piling up but at a slower pace, and buyers have options with new buyers starting to take advantage of the lower prices as some jump in.

Final Thought:

Here’s the truth no one wants to say out loud: There will not be a big bounce back this year, or next year. We’re not suddenly going back to 2021/22 energy. If anything, the market is normalizing, and this might be what normal feels like for a while. I suspect we will see prices begin to flatline going into 2026 and just stay there, for a while.

If you’re a buyer waiting for some magic moment where prices crash you’re probably waiting too long. As mentioned above you can find homes selling 10%, 15%, 20% less today than they were selling in 2021 -2023. Will prices fall further? Possibly, nobody can predict that, but with so many buyers on the sidelines I can see many of them realize that timing the market is a foolish game, if they are in a secure position finically, have strong jobs that wont be affected much by tariffs or a recession then starting their search now is as good as any, buyer competition is low, they can now afford more in the sought after areas they want to be in and if they plan correctly and are patient to buy what they like and stay 5,7,10 years they will be just fine even if prices fall a bit.

For sellers. This summer is all about strategy. If you need to sell, price sharp. Look great. Negotiate smart. This is not a time to be stubborn. And above all—adjust your expectations.

Questions? Want a deep dive on your neighbourhood? Or just want someone to cut through the noise? Send me a email or set up a No Obligation Phone call.