The Toronto real estate market showed encouraging signs in September 2025, with sales rising 8.5% year-over-year and prices holding steady after months of adjustment. Following the Bank of Canada’s September rate cut, more buyers are returning to the market, taking advantage of improved affordability and a wide selection of listings. Here’s your full Toronto housing market update for October 2025, including inventory levels, home prices, mortgage trends, and what to expect next.

Toronto Real Estate Market Overview – September 2025 Results

The Toronto Regional Real Estate Board (TRREB) reported 5,592 home sales in September 2025 — an 8.5% increase compared to the same month last year. This marks one of the strongest year-over-year gains we’ve seen in 2025 and signals that buyers are becoming more active now that mortgage rates have started to ease.

The Bank of Canada’s September rate cut gave many households the confidence (and financial room) to enter or re-enter the housing market. As borrowing costs fall, more families can now afford a home that fits their lifestyle and budget.

New Listings & Market Conditions

There were 19,260 new listings across the GTA in September — up 4% year-over-year, providing buyers with plenty of choice. However, new listings were down slightly from August, suggesting that some market segments are beginning to tighten as demand improves.

While buyers still hold some leverage, we’re seeing early signs of a more balanced market emerging this fall.

Home Prices & Market Stability

The average selling price for all home types in the GTA came in at $1,059,377 — down 4.7% year-over-year, but essentially flat month-over-month (up 0.2% from August).

The MLS® Home Price Index Composite Benchmark also slipped 5.5% annually and 0.5% monthly, showing the market has largely stabilized after several months of decline.

This suggests that Toronto home prices may have found their floor, particularly in mid-range detached homes and the condo market.

Average Days on Market

Properties are taking slightly longer to sell, averaging 25 to 30 days on market. Homes that are well-priced and presented properly are still selling quickly, while overpriced listings are sitting longer and often require price adjustments.

The key takeaway for sellers? Pricing strategy and presentation matter more than ever.

Impact of Mortgage Rate Cuts

The Bank of Canada’s September rate cut — and the possibility of two more quarter-point cuts later this year — is having a real impact on the market. Lower rates are boosting affordability, giving buyers renewed confidence and opening the door for more first-time buyers to make their move.

Many economists believe that continued rate reductions will stimulate stronger housing activity in early 2026 as affordability and consumer sentiment improve further.

Buyer Demand Trends

First-time buyers are re-entering the market, especially in the condo and townhome segments.

Move-up buyers are exploring their next home before prices start to climb again.

Demand remains measured and price-sensitive, but overall confidence is trending upward.

In short — buyers are back, but they’re being selective and data-driven.

Seller Motivation

Sellers have adapted to this new reality. Many have adjusted their pricing to align with the market, while others who aren’t in a rush are choosing to wait out current conditions.

The listings that succeed right now are those that are staged, marketed professionally, and priced right from day one.

Month-Over-Month & Year-Over-Year Summary
Metric September 2025 vs. August 2025 vs. September 2024
Sales 5,592 Up +8.5%
New Listings 19,260 Down +4%
Average Price $1,059,377 +0.2% -4.7%
MLS® HPI — -0.5% -5.5%
Bottom Line

The September rate cut has started to breathe new life into the GTA real estate market. Sales are improving, prices are stabilizing, and both buyers and sellers are regaining confidence heading into the end of 2025.

If interest rates continue to trend downward, early 2026 could kick off with a much stronger spring market. For buyers, this may be the best window in years to secure a property before demand — and prices — rise again.

Work With a Toronto Real Estate Expert

If you’re thinking about buying, selling, or investing in Toronto real estate, let’s talk about your next move and how these market changes affect your plans.

Stephen Young
stephen@youngrealty.ca

​youngrealty.ca