The momentum in the Greater Toronto Area (GTA) housing market that began in June continued through July, with sales activity nearly matching last year’s pace. June saw only a 2.4% drop from the same period in 2024, signaling renewed buyer confidence and activity.
Many buyers who had been on the sidelines earlier in the year have returned to the market, taking time to educate themselves and explore opportunities. As a result, more purchasers are finding negotiating power than they have had in recent years, while sellers are facing longer listing periods and the need for more competitive pricing strategies.
Market sentiment was influenced by the Bank of Canada’s July rate decision, which resulted in a hold rather than another decrease. This has led both buyers and sellers to adjust to the “new normal,” with a growing belief that the market is stabilizing and any future decrease will enable the market. Many buyers view the current period as a window for improved affordability and opportunity before conditions shift again.
SALES AND INVENTORY TRENDS
After five consecutive months of double-digit inventory growth, new listings increased by only 2.1% from May to June. In July 2025, GTA REALTORS® reported 6,100 home sales through TRREB’s MLS® System — a 10.9% increase compared to July 2024. New listings totalled 17,613, up 5.7% year-over-year.
On a seasonally adjusted basis, July home sales rose compared to June 2025, while new listings also increased but at a slower pace. This tightening of market conditions suggests that sellers who could not align with current price expectations have withdrawn, allowing transactions to set new benchmarks for affordability.
CONDO MARKET
LOOKING AHEAD
