July 2025 GTA Real Estate Market Update: A Turning Point for Buyers and Sellers

The GTA housing market just had its strongest July since 2021 — but there’s more to the story than the headlines suggest. While sales are up and inventory is rising, prices continue to trend downward. For both buyers and sellers, July revealed a market full of movement, motivation, and opportunity — with a few caution signs on the road ahead.

Sales Surge: Buyers Are Back!

After a quiet spring, July brought a notable surge in buyer activity:

6,100 homes sold across the GTA — a 10.9% increase from July 2024
Sales rose 13% month-over-month, marking the biggest jump since October 2024
It was the busiest July in four years, according to TRREB

What’s behind the uptick? Buyers are getting more comfortable with borrowing costs, and many are no longer waiting on the sidelines. The result: renewed demand, especially for well-priced and move-in-ready homes.

Prices Cool: Opportunity — But Not Without Context

While increased sales grabbed the spotlight, home prices continued to decline:

Average GTA sale price: $1,051,719 → down 5.5% year-over-year
Benchmark price (MLS® HPI): ↓ 1.4% from June, ↓ 5.4% from 2024
Prices are now $302,000 below the 2022 peak — a 23.6% correction

Better Dwelling offers a sobering counterpoint to the excitement: while sales were up, they were still below the 10-year seasonal average. Combined with continued downward pressure on prices and record inventory levels, it’s clear that this market is active — but far from overheated.

Takeaway: For buyers, there’s value to be found — especially while prices remain suppressed and competition is lower than during previous peaks.

Inventory Hits New Heights: Buyers Have the Upper Hand (For Now)

New listings climbed to 17,613 (+5.7% YoY)
Active listings surged to 30,215, a 26.2% increase
This is the highest July inventory level on record
The sales-to-new-listings ratio hovers around 35%, signaling a strong buyer’s market

But keep in mind — this window may not last. With a potential interest rate drop on the horizon and many buyers already re-entering the market, competition could intensify again later this year.

Sellers: There’s a Window for You Too

While much of the buzz has centered on buyers, sellers shouldn’t tune out.

Here’s why:

Buyer confidence is significantly higher than earlier this year
Motivated buyers + competitive pricing = faster sales and strong terms
Inventory may be high, but well-staged, well-priced homes are moving quickly

Looking ahead: With economic uncertainty and rate fluctuations still looming, listing now may allow sellers to capitalize on a moment when buyers are actively engaging — before market dynamics shift again.

Strategy is key. Sellers who align with current market realities — pricing competitively, marketing strategically, and understanding their local landscape — are still winning.

What’s Driving This Market?

Improved affordability from price declines
Stabilized borrowing costs giving buyers confidence
Sellers adjusting expectations and meeting the market
A collective sense that "waiting" may not lead to better deals later

Bottom Line: A Market in Motion

July 2025 showed us one thing: this is not a stagnant market.

For buyers, it’s a prime moment to make a move while inventory is high and prices are more accessible.
For sellers, it’s a chance to stand out and sell to motivated buyers who are back in the game.
For investors, the dual pressure of soft prices and growing rental demand makes multi-unit opportunities more appealing than ever.

Thinking of Making a Move?

Whether you’re planning to buy, sell, or invest, the current GTA market offers a unique balance of opportunity and urgency. The path ahead remains uncertain — which makes today’s activity level and pricing environment something worth acting on.

Reach out for a personalized market consultation. Let’s make a smart move together.