Victor Alvarez - Toronto Real Estate Expert

TORONTO REAL ESTATE MARKET AUGUST 2025

FOREWORD

The Toronto condo market is on pause. It’s uncertain, yes. But it’s also ripe with potential for all, including buyers and sellers. This period of slowness is being felt across the Greater Toronto Area. Sales volumes have dipped. Listings are lingering, depending on the neighbourhood and property features, prices are down as much as 22 % from the pick on March 2022. Buyers are cautious. And yet, there hasn’t been a crash, just stillness.

In July and August, we have seen a lots of silver linings, more activity, more people looking at different types of properties, the rental market has begun to pick-up providing confidence to investors, in the new Bank of Canada’s interest rate announcement on September 17, most likely we will see a quarter point drop, and that will provide more buyer confidence as we go into the Fall market, and into 2026. Real estate is one of the three top economic engines that

drive Canada’s economy, so it is not going anywhere, it is just muddled now.

Sellers – a realistic pricing strategy and presenting at its best will put your property in an exclusive spot to attract the right buyers and sell at the best price, fast.

Buyers – this is an exceptional time to buy, the market is shifting in favor of buyers, offering lots of opportunities to secure great deals. However, this window of opportunity is likely to be short-lived, so it is essential to act quickly to capitalize on the current market conditions.

Whether you are thinking of buying or selling, the Toronto market is giving us real opportunities right now. If you are unsure of your next move, I would love to chat and help you figure out the best approach.

For the right pricing strategy and timing, call 647-223-0562 or email at victor.alvarez@bell.net.

SALES SUMMARY

Toronto Real Estate Market Report August 2025

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.

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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

Condo supply now hovers at just over seven months. While resale condo prices remain under downward pressure, activity in mid to larger units has increased. This is the condos segment that reflects the lifestyle choice condo living provides. Rent levels are showing signs of stabilization, though many investors remain on the sidelines. This has opened the door for first-time buyers, particularly in smaller units, where demand and investor returns have been most impacted.

LOOKING AHEAD

The GTA housing market continues to experience a multi-speed recovery, with varying performance across property types, price ranges, and neighbourhoods. As external factors such as potential rate cuts and evolving economic sentiment influence conditions through late summer and into fall, there is potential for pent-up demand to be released. This could lead to a more balanced and active market in the months ahead.