GTA Real Estate in August 2025: Housing Market Headline: A Surge in Listings & Prices in Retreat

August brought a dramatic shift to the Greater Toronto real estate scene. Home prices continued their descent, now more than 24% below the February 2022 record—with the average typical home dipping to approximately $969,700, marking a second‑largest monthly drop in the last year.
Simultaneously, listings skyrocketed to 27,495 active homes, a 22% year-over-year increase, setting a new August high. Although sales ticked up 2.4% to 5,211 units, this figure remains historically low—the second-worst August of the past 25 years.
 


Broader Economic Backdrop: Job Losses & Unemployment Surge
Nationally, Canada shed a staggering 66,000 jobs, driving the unemployment rate up to 7.1%—the highest level since May 2016 (COVID exclude), with part-time jobs leading the way having shed approximately 60,000.
Employment declines were widespread:

• Professional, scientific & technical services shed ~26,000 positions.

• Transportation & warehousing lost ~23,000.

• Manufacturing shrank by ~19,000.

• Only construction added jobs, with a gain of ~17,000 

This economic downturn is amplifying expectations that the Bank of Canada may cut interest rates soon, as market odds for a September cut rose to over 90% following the weak labour data


What These Numbers Mean for You

• Sellers: We're firmly in a buyer’s market. That said, the market is behaving sporadically with increased showings, multiple offers and buyer’s showing signs of motivation to purchase.

• Buyers: With more choices you can now find a home that fits your lifestyle without the Fear of Missing Out. Whether you’re a first-time buyer, looking for the “family home” or an investor, it is a great time to explore the real estate market.

• Market Dynamics: Interest rates appear to be trending lower, certain market segments may get tighter sooner than expected.  The biggest factor impacting the market will be consumer confidence; not interest rates.