Toronto Housing Market Update Sept 2025

Toronto Housing Market 2025: Prices Fall, Condo Listings Surge – Is Now the Time to Buy?

2025 has brought dramatic changes to Toronto’s real estate landscape, with price corrections and sky-high listing volumes reshaping buyer and seller fortunes—especially in the downtown condo market.

A Year of Price Drops

After holding steady for years, Toronto home prices have finally taken a notable dive. Average home prices across the GTA slipped by over 5%, with August’s benchmark coming in at $969,700—lower than both 2024 and 2023 averages (Source: wowa.ca, nesto.ca). Toronto condos saw even sharper declines. The average Q2 2025 condo price hovered at $685,961, down nearly 6% in just one year (Source: TRREB.ca Condo Market Report, deeded.ca/blog). New and resale condos are now being sold at prices last seen before the pandemic-era boom—the lowest since at least early 2021.

Inventory: A Flood of Choices for Buyers

Inventory is exploding, especially in the city’s core. The total number of active GTA listings soared past 31,000 in June—the highest in nearly three decades. Downtown condos lead the supply surge, with about 8,500 listings at the start of 2025 and projections nearing 15,000 by year’s end (Source: deeded.ca/blog). Months of inventory for condos hit 7, well above the levels seen for detached homes.

Condo Market: Buyer’s Paradise or Seller’s Headache?

For condo sellers, 2025 has been a wake-up call. Sales volumes fell by 12%, and the proportion of condos selling over asking dropped dramatically. Downtown sellers face fierce competition and often need to lower expectations. Even new pre-construction condo projects are “frozen,” caught in a cycle of weak buyer demand and cautious developer attitudes (Source: deeded.ca/blog, RBC.com).

For buyers, it’s a historic window of opportunity: more choice, more negotiating power, and widespread price cuts.

Looking Ahead

Unless economic or interest-rate winds shift, the rest of 2025 is expected to favor bargain-hunting buyers, while sellers—especially those in the condo market—must adapt to this new reality. Recovery may hinge on future borrowing cost relief and a boost in buyer sentiment.

Sources

• Toronto Housing Market: Sep. 4th, 2025 Update – wowa.ca
• Nesto.ca – Toronto Housing Market Outlook 2025
• TRREB.ca – Condo Market Report
• Deeded.ca – Toronto Condo Market April 2025 Update
• RBC – Navigating Toronto’s Frozen Pre-Construction Condo Market
• Infinity Assets Group – Bright Side of Toronto Real Estate Market 2025

Disclaimer:
The information provided in this article is based on our research from publicly available sources and market reports. While we strive for accuracy, we do not guarantee the completeness or correctness of the information. Readers are encouraged to conduct their own research and consult with qualified professionals before making any real estate or financial decisions. We do not assume any liability for actions taken based on the content of this article.